CIPS L5M7 Question Answer
Which of the following is adisadvantageofJust-In-Time (JIT) Manufacturing?
You cannot obtain economies of scale
Inventories are wasteful and expensive
There is less waste produced
It is expensive to implement
JIT removes stockholding benefits, meaning firmslose economies of scalefrom bulk ordering. Each order is small and frequent.
Short cited term: “JIT limits bulk economies due to reduced inventory.” (L5M7 Study Guide, p. 159)
TESTED 16 Dec 2025
Copyright © 2014-2025 ACE4Sure. All Rights Reserved