Which of the following, if true, weakens the argument for the shift to a just-in-time logistics system?
A) Carrying too much inventory results in higher-than-necessary inventory-carrying costs.
B) Under the new system, the company would have inventory sufficient for fewer days of operations.
C) Clean Sweep's most important suppliers prefer a flexible supply schedule.
D) Implementing the system would require an extensive overhaul of the existing supply chain.
E) Demand for Clean Sweep's products is stable and predictable.
Answer: D
Explanation: D) Choice D weakens the argument since the benefits of a just-in-time system could be outweighed by the costs of re-engineering the entire supply chain. Choice A: A just-in-time system is designed to lower inventory-carrying costs, so Choice A strengthens the argument. Choice B describes the system accurately but provides no reason not to adopt it. Choice C strengthens the argument by suggesting that the transition could be easy.
You might also like to view...
Which of the following organizations would most likely not use time-and-material pricing?
a) Automobile repair company b) Engineering firm c) Public accounting firm d) Custom furniture manufacturer
Who represents an insurance company in an insurance transaction?
A) The agent B) The Commissioner C) The broker D) The consultant"