Asked by Neupane Saroj on Jun 30, 2024
Verified
The advantage of a just-in-time (JIT) system is that there are huge savings in costs relating to the holding of inventory as JIT companies never hold inventories of any description.
Just-In-Time (JIT)
An inventory management strategy where materials and products are produced or acquired only as needed for immediate use, reducing waste and inventory costs.
Holding Inventory
The process of keeping stock of goods or materials on hand to protect against fluctuations in demand or supply.
- Understand the principles and benefits of Just-In-Time (JIT) systems in inventory management.
Verified Answer
MJ
Morgan JohnsonJul 06, 2024
Final Answer :
False
Explanation :
While JIT systems aim to minimize inventory levels, they do not eliminate inventories entirely. Companies still hold minimal levels of inventory to meet immediate production needs and avoid disruptions.
Learning Objectives
- Understand the principles and benefits of Just-In-Time (JIT) systems in inventory management.
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