Which of the following BEST describes just-in-time inventory management?
A) Production system that stores surplus goods at each stage of manufacture
B) Inventory purchasing process that gains purchase discounts by buying in large quantities
C) Production system that focuses on delivering materials and goods in exactly the right quantity when needed
D) Inventory system which stockpiles raw materials to protect against supply interruptions

Question

Quizplus · Accepted Answer

Just-in-time inventory management is a production system that focuses on delivering materials and goods in exactly the right quantity when needed, thereby minimizing waste and reducing inventory holding costs. This approach relies on close coordination between suppliers, manufacturers, and distributors to ensure that the right items are delivered at the right time in the right quantity. It is often used in lean manufacturing and agile supply chain management strategies.

Option A is incorrect as this approach is known as the batch production system or the traditional inventory management system.  Option B is incorrect as it is describing the process of purchasing in a bulk quantity in order to obtain discounts rather than describing just-in-time inventory management. Option D is incorrect as it is the opposite of Just-in-time inventory management system which specifically aims to minimize inventory of raw materials, work in progress, and finished goods.

Which of the Following BEST Describes Just-In-Time Inventory Management