The primary advantage of a just-in-time inventory system is:
A)The amount of money tied up in inventory is minimized.
B)Customers are afforded a wider selection of merchandise available for immediate delivery.
C)The company is able to use the specific identification method of inventory pricing.
D)The risks of losing sales opportunities or of having to shut down manufacturing operations because of inventory shortages are minimized.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems aim to minimize the amount of money tied up in inventory by reducing the inventory levels to the minimum necessary to keep operations running smoothly. This approach helps in reducing storage costs and improving cash flow.

The Primary Advantage of a Just-In-Time Inventory System Is