Which of the following is not a benefit of just-in-time (JIT) inventory management?

Just-in-time (JIT) inventory management is designed to reduce inventory levels by receiving goods only as they are needed in the production process, which leads to various benefits. One major advantage of JIT is the minimization of carrying costs, as fewer goods in stock mean lower expenses associated with storage, insurance, and depreciation.

Additionally, JIT helps in the reduction of excess inventory, allowing businesses to avoid overstocking items that may become obsolete or have a short life-span. This lean approach enhances inventory turnover, as products are sold more quickly and replaced as needed, ensuring that inventory levels closely align with actual demand.

In contrast, increased storage costs would be counterproductive to the JIT philosophy. JIT aims to eliminate the need for large storage spaces by keeping inventory levels low and minimizing the costs associated with maintaining excess stock. This principle directly contradicts the essence of JIT, making it clear that the choice indicating increased storage costs is not a benefit of this inventory management strategy.