Final answer:
JIT purchasing helps in reducing inventory levels and storage costs, aligning suppliers' deliveries with production needs to improve efficiency and reduce waste. This strategy contributes to social benefits by saving on waste management expenses and minimizing environmental impacts.
Step-by-step explanation:
JIT purchasing facilitates reduction in inventory levels and the associated storage costs. Just-In-Time (JIT) is a management strategy that aligns raw-material orders from suppliers directly with production schedules. It helps companies to decrease waste by receiving goods only as they are needed in the production process, thus reducing inventory costs. This strategy can lead to more efficient manufacturing processes, increased workplace efficiency, and a better return on investment by minimizing the capital that is tied up in unused inventory.
For example, when the Junkbuyers Company purchases items for resale, they benefit from not only the transaction itself but also from a reduction in the materials destined to become waste. This can result in savings for households and municipal services, which translates into broader social benefits such as reduced expenditure on waste management and lower environmental impact.