Clean Sweep Corporation Is a Consumer Goods Company Manufacturing Home-Care

Multiple Choice

Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. Which of the following, if true, would strengthen the argument for the shift to a just-in-time inventory system?

A) Clean Sweep's storage and handling costs are significant.
B) Clean Sweep's suppliers have not adopted just-in-time systems.
C) The current system requires higher inventory levels during the summer as compared to the winter.
D) Demand for Sparkle varies depending on the promotional strategies of Clean Sweep's retail partners.
E) Sparkle comes in many varieties, none of which is more popular than the leading brand.