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GCSE

Business Operations

Question

What is the benefit of JIT?

1 year ago

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1 Reply

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K

Karli


1 Answer

A
Aakif Muhammad

One benefit of JIT (tust in time) is that the business does not have to pay for storage of these goods, by renting a warehouse where they store the goods. This decreases their fixed cost, therefore increasing their profit margins. Also JIT ensures that the good are only ordered once demand is high which prevents the risk of the product becoming obsolete

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