The drawback of a just-in-time inventory system is that it: A. increa

QUESTION

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.

ANSWER

B