Certification Board for Sterile Processing and Distribution (CBSPD) Sterile Processing Technician Practice Exam

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What do just-in-time distribution systems primarily aim to reduce?

Supplier costs
Inventory holding costs
Staffing requirements
Material waste

The correct answer is: Inventory holding costs

Just-in-time distribution systems primarily aim to reduce inventory holding costs. This approach focuses on receiving goods only as they are needed in the production process, which minimizes the amount of inventory kept on hand. By reducing stock levels, facilities can decrease storage space requirements, lower the risk of inventory obsolescence, and minimize costs associated with managing and maintaining excess inventory. This strategy helps organizations become more efficient, as they are not tying up capital in excess stock and can respond more flexibly to changing demand. Consequently, the emphasis on reducing inventory holding costs translates into a leaner operational model that fosters greater resource efficiency.