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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 companys profitability as measured by return on capital invested.
Answer
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