Which one of the following is NOT typically a benefit associated with Just-In-Time inventory management?

In the context of Just-In-Time (JIT) inventory management, the approach aims to minimize inventory-related costs by receiving goods only as they are needed in the production process, which leads to several significant benefits.

The reduction in holding costs is one of the key advantages of JIT. By keeping minimal inventory on hand, a business can significantly decrease the costs associated with storage, insurance, and deterioration of goods.

Similarly, JIT can enhance cash flow since less capital is tied up in inventory, allowing businesses to allocate that capital elsewhere. This is particularly beneficial in rapidly changing markets where demand can fluctuate unpredictably.

Elimination of stockouts is often mistakenly believed to be a benefit of JIT. However, while JIT minimizes excess inventory, it can lead to stockouts if there are unexpected increases in demand or delays in deliveries.

The high dependency on suppliers' reliability is not a benefit, but rather a challenge associated with JIT. Since JIT requires precise timing in deliveries of materials, any disruption in the supply chain can directly impact production processes. This reliance means that any issues with suppliers could potentially lead to increased costs or stockouts, which contradicts the fundamental goals of JIT.

Thus, the correct answer indicates that the high