Question

Which of the following can be achieved by implementing just-in-time (JIT) manufacturing?

a.Huge quantity of finished goods inventory
b.High inventory carrying costs
c.Huge quantity of work-in-process inventory
d.Minimal inventory holding costs

Answer 1

Just-in-time (JIT) manufacturing can achieve minimal inventory holding costs by reducing the need for excessive inventory. Companies can operate with smaller, more streamlined inventory levels.

Step-by-step explanation:

Just-in-time (JIT) manufacturing can achieve minimal inventory holding costs. This is because JIT manufacturing focuses on producing and delivering goods just in time to meet customer demand, thus reducing the need for excessive inventory. By implementing JIT manufacturing, companies can avoid the costs associated with holding large quantities of finished goods or work-in-process inventory. Instead, they can operate with smaller, more streamlined inventory levels, resulting in lower inventory holding costs.