The Drawback of a Just-In-Time Inventory System Is That It

Multiple Choice

The drawback of a just-in-time inventory system is that it

A) increases the total capital required by a firm.
B) leaves a firm without a buffer stock of inventory.
C) increases inventory holding costs, such as warehousing and storage costs.
D) is less efficient than traditional system in spotting and fixing defective inputs.
E) lowers a company's profitability as measured by return on capital invested.