1. Lower stock holding means a reduction in storage space which saves rent and insurance costs.
2. As stock is only obtained when it is needed, less working capital is tied up in stock.
3. There is less likelihood of stock perishing, becoming obsolete or out of date.
4. Avoids the build up of unsold finished product that can occur with sudden changes in demand.
5. Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right the first time.
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