Which of the following is CORRECT about a just-in-time production system?
A) Customer orders drive the production process.
B) Goods are produced ahead of time to protect against running out of inventory.
C) Materials are purchased in large quantities.
D) Inventory levels are maintained at high levels.

Question

Quizplus · Accepted Answer

A just-in-time production system is a system where production is initiated only in response to customer orders. This means that goods are not produced ahead of time, materials are not purchased in large quantities, and inventory levels are not maintained at high levels. The focus is on producing only what is needed, when it is needed, and in the required quantities to meet customer demand. Therefore, the correct answer is A.

Which of the Following Is CORRECT About a Just-In-Time Production