Which of the following is most likely to be a feature
of Just-in-time Inventory management? *
(a) Higher inventory holding cost
(b) Less frequent deliveries
(c) Les dependence on suppliers
(d) more risk of inventory shortages
As just in time, name itself suggests that inventory will be made available when required.
So it will reduce the inventory holding cost as less inventory is kept on hand, which will increase number of deliveries as we are not going to stock the inevntory, we are more dependent on supplier as any mistake on his part will stop our production process. That's why the last one is correct : more risk of inventory shortage.
Answer : (d) more risk of inventory shortages [Thumbs up please]
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