The flow of goods through a JIT system is based on
A)each work station working at its maximum possible rate of output.
B)processing goods in large batch sizes rather than less economical small batches.
C)maintaining a stockpile of raw materials in anticipation of errors in production.
D)producing to meet customer demand with no buildup of inventory at any point in the production process.

Question

Quizplus · Accepted Answer

JIT stands for "just-in-time", meaning that goods are produced only when they are needed by the customer. This requires a production system that is flexible, efficient, and able to quickly respond to changing customer demand. The goal is to minimize inventory and reduce waste, so maintaining a stockpile of raw materials or processing goods in large batches would be counterproductive to this approach. Instead, each work station should be optimized to produce goods at a steady rate that matches customer demand. Therefore, producing to meet customer demand with no buildup of inventory at any point in the production process is the best choice.

The Flow of Goods Through a JIT System Is Based