Explain an Advantage of Using the JIT Inventory System

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The Answer is An advantage under the JIT inventory system is that defective parts enter an organization's production system immediately; they are not warehoused for months before use. This means that defective inputs can be quickly spotted. Managers can then trace a problem to the supply source and fix it before more defective parts are produced.
One drawback of JIT systems is that they leave an organization without a buffer stock of inventory. Although buffer stocks of inventory can be expensive to store, they can help an organization when it is affected by shortages of inputs brought about by a disruption among suppliers (such as a labor dispute in a key supplier). Moreover, buffer stocks can help an organization respond quickly to increases in customer demand-that is, they can increase an organization's responsiveness to customers.

Explain an Advantage of Using the JIT Inventory System

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Explain an Advantage of Using the JIT Inventory System

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Correct Answer:
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