In the context of managing an extended transportation pipeline, what is the primary concern associated with implementing a "just in time" (JIT) inventory system?

In the context of managing an extended transportation pipeline, what is the primary concern associated with implementing a "just in time" (JIT) inventory system?
A . Minimizing the reliance on warehousing and storage
B . Reducing the cost of inventory holding
C . Increasing the risk of disruptions if material flow or labor is interrupted
D . Reducing transportation costs through last-minute logistics planning

View Answer

Answer: C

Explanation:

JIT inventory systems reduce storage costs but increase vulnerability to supply chain disruptions due to material flow or labor interruptions. [P-13]