Which of the following situations would present a challenge for a just-in-time (JIT)investment system?
A)Increase in the number of suppliers
B)Long-term relationships with suppliers
C)Vendor managed inventory
D)Sudden increase in demand

Question

Quizplus · Accepted Answer

A sudden increase in demand would be a challenge for a JIT investment system as the system relies on having just enough inventory to satisfy current demand without excessive buffer stock. Therefore, a sudden increase in demand would require a quick adjustment and potentially disrupt the JIT system. The other options, such as increasing the number of suppliers or having long-term relationships with them, and vendor-managed inventory, can actually enhance the effectiveness of a JIT system.

Which of the Following Situations Would Present a Challenge for a Just-In-Time