Question

6 marks)
    (ii) Describe two (2) benefits of just-in-time manufacturing.
                                           (Total: 20 marks)

Answer 1

Following are the benefits of just-in-time (JIT) manufacturing-

1. JIT aims at keeping the stock holding to a bare minimum which further leads to much lower inventory costs and much lower storage and warehouse costs.
2. JIT manufacturing aims at producing items based on demand which means that all products manufactured will be sold. So no obsolete items in the finished goods section. It helps an organization in adapting to certain changes in product specifications from the market.

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