An advantage of JIT is that it:
A)reduces costly inventories.
B)maintains minimum inventory.
C)helps the company's cash flow.
D)All of the above

Question

Quizplus · Accepted Answer

JIT (Just-In-Time) has all of these advantages. By reducing inventories, JIT helps in reducing costs, avoids waste, and frees up space. Maintaining minimum inventory levels ensure that there is no overproduction or overstocking that can delay revenue flow. JIT helps the company's cash flow by having more cash available for other expenses as inventory costs are reduced. Thus, all three options mentioned in the question are correct.

An Advantage of JIT Is That It