Which of the following, if true, strengthens the argument for the shif

QUESTION

Which of the following, if true, strengthens 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 than in 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.

ANSWER

Answer: A
Explanation: A) Just-in-time logistics systems can reduce handling and storage costs, which is an advantage when those costs are significant, as shown in Choice A. Choice B, if anything, weakens the argument as the system might be even more effective if others in the supply chain used similar systems. Choice C does not point out a flaw in the current system as it is reasonable that people would use more cleaning products in warmer weather. Choice D suggests that demand is hard to predict, which weakens the argument. Choice E: Sparkle’s position in the market does not tell which inventory system makes the most sense.