Which of the following is FALSE regarding the links between JIT and quality?

Which of the following is FALSE regarding the links between JIT and quality?



A) Inventory hides bad quality; JIT immediately exposes it.
B) JIT reduces the number of potential sources of error by shrinking queues and lead times.
C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
E) JIT increases the cost of obtaining good quality.



Answer: E


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