Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 20 - Inventory Management, Just-in-Time, and Simplified Costing Methods - Assignment Material - Questions - Page 794: 20-8

Answer

I agree. JIT (Just-In-Time) purchasing offers cost reduction, improved cash flow, reduced waste, better quality control, and faster response to changes. However, it also entails risks like supply chain disruptions, inventory shortages, supplier dependence, potential quality issues, and higher ordering costs. Balancing these benefits and risks is crucial for a successful JIT purchasing strategy.

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