Asked by Filip Horá?ek on May 10, 2024
Verified
Which of the following is NOT a benefit of a just-in-time (JIT) system?
A) Areas previously used to store inventories are made available for other more productive uses.
B) Funds that have been tied up in inventories can be used elsewhere.
C) The time required to fill an order is reduced, resulting in quicker response to customers and consequentially greater potential sales.
D) Production workers are always busy.
Just-In-Time (JIT) System
A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs through the timely creation or acquisition of materials.
Production Workers
Production workers are employees involved in the manufacturing process, directly contributing to the creation of products through tasks such as assembly, machining, and inspection.
- Comprehend the fundamentals and advantages of just-in-time (JIT) systems.
Verified Answer
MH
Marcellus HughesMay 13, 2024
Final Answer :
D
Explanation :
While just-in-time systems offer several benefits such as freeing up storage space and funds, and improving response time to customers, they do not guarantee that production workers will always be busy. JIT systems rely heavily on the demand for the product, and if demand decreases, production workers may not have as much work to do.
Learning Objectives
- Comprehend the fundamentals and advantages of just-in-time (JIT) systems.