Inventory reduction via JIT is an effective tool for identifying

A. setup costs.
B. causes of variability.
C. inefficiencies in warehouse layout.
D. holding costs.

B. Causes of variability

Explanation:

Inventory reduction via Just in time is a technique that aligns raw material orders from suppliers directly to production schedules. It helps in reducing inventory costs. It increases efficiency and reduces waste as goods are only received when the organization using JIT needs them for operations. In JIT, production period is short, warehouse need is minimize thus reducing costs. Also, it becomes of useful tool in identifying causes of variability. It reduces variability caused by both internal and external factors. Variability are normal deviation from the most efficient and optimum process.

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