What is NOT a benefit of implementing a Just-in-time strategy?

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The choice that identifies "never run out of supplies" as not a benefit of implementing a Just-in-time (JIT) strategy reflects the inherent nature of JIT principles. Just-in-time is designed to minimize inventory levels and reduce waste by ordering and receiving goods only as they are needed in the production process. While this approach effectively helps in reducing holding costs, improving inventory management, and enhancing supply chain responsiveness, it does not guarantee that a company will never run out of supplies.

In fact, a key characteristic of JIT is that it operates with minimal safety stock. If there are disruptions in the supply chain or unexpected demand increases, a business utilizing JIT may face shortages. Therefore, "never running out of supplies" represents an unrealistic expectation for JIT systems, as they rely on precise timing and coordination to function effectively. Relying solely on JIT without adequate contingency planning can lead to stockouts, highlighting that while JIT offers numerous advantages, complete assurance against running out of supplies is not one of them.

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