Post Utme Covenant University 2021 Commerce Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2021 Commerce Objective / Multiple Choice
Question 38 POST_UTME_COVENANT_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering implementing a just-in-time (JIT) inventory system to reduce its inventory costs. The company has identified several potential benefits of JIT, including reduced inventory costs, improved product quality, and increased flexibility. However, the company is also aware of several potential drawbacks, including increased lead times, higher transportation costs, and reduced product availability. Which of the following is a key consideration for the company when deciding whether to implement JIT?

Answer Options

A. The company's ability to negotiate lower transportation costs with its suppliers
B. The company's ability to reduce its inventory costs
C. The company's ability to improve product quality
Correct Answer D. The company's ability to reduce its lead times
Correct Answer
D
Correct Option:
The company's ability to reduce its lead times

About This Question

This is Post Utme Covenant University 2021 Commerce Question 38. It is one of the objective questions from the 2021 Post Utme Covenant University Commerce examination.

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