Question

Which of the following is not a benefit of small lot sizes in JIT systems? A. In-process inventory is lowered

B. Fewer production runs are required for each product
C. Holding costs are reduced
D. Less space is required for storage
E. Increased visibility of problems

Answer 1

Fewer production runs are required for each product and Increased visibility of problems are benefits of small lot sizes in JIT systems, while Less space is required for storage is not a benefit.

Step-by-step explanation:

One of the benefits of small lot sizes in JIT systems is that Fewer production runs are required for each product. This means that the company can produce smaller batches of products more frequently, reducing the need for long production runs. This can result in quicker turnaround times and greater flexibility in meeting customer demands.

In addition, small lot sizes can also lead to Increased visibility of problems. When smaller batches are produced, it becomes easier to detect and address any quality issues or production problems that may arise.

However, Less space is required for storage is not a benefit of small lot sizes in JIT systems. In fact, smaller batch sizes often require more frequent deliveries of raw materials and components, leading to a need for adequate storage space.