All of the following are benefits of just-in-time inventory ordering systems except that JIT
A) reduces warehouse space.
B) saves utility and manpower costs.
C) reduces inventory costs.
D) prevents stock outs.

Question

Quizplus · Accepted Answer

JIT inventory ordering systems do not prevent stock outs, they aim to minimize inventory levels by ordering the right amount of inventory at the right time. However, if there are unexpected disruptions in the supply chain, stock outs can still occur. The other benefits mentioned (reduced warehouse space, utility and manpower costs, and inventory costs) are all common benefits of JIT systems.

All of the Following Are Benefits of Just-In-Time Inventory Ordering