Which of the following situations are likely to happen to the suppliers with implementation of JIT or lean?
1)The buyer will only use a limited number of suppliers
2)Most contracts will be based on long term goals
3)The suppliers are more likely to be subjected to reverse auctions
4)The focus of JIT relationships will be on reducing supplier power in the relationship
A) (1)
B) (3) and (4)
C) (1) and (2)
D) (1), (2) and (4)

Question

Quizplus · Accepted Answer

In the implementation of JIT or lean, the focus is on reducing waste and increasing efficiency, which often involves establishing strong relationships with limited suppliers who can provide high-quality products in a timely manner. Therefore, choice (1) is likely to happen. Additionally, long-term contracts are often preferred over short-term contracts as they provide stability and allow suppliers to plan production accordingly. This makes choice (2) likely to occur as well. However, the implementation of JIT or lean does not necessarily result in reverse auctions or a decrease in supplier power, so choices (3) and (4) are less likely to happen.

Which of the Following Situations Are Likely to Happen to the Suppliers