A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.
A)just-in-time
B)frictionless
C)bullwhip
D)safety-stock
E)streamlined

Question

Quizplus · Accepted Answer

The given scenario emphasizes on a just-in-time (JIT) strategy where the components are ordered and arrive just in time for their need in the production process. JIT strategy aims to minimize the inventory holding costs and promotes a lean manufacturing system. It eliminates the need for safety stocks and reduces the bullwhip effect, which occurs due to inaccurate demand forecasting leading to excess inventories. Therefore, the best choice for this scenario is option A, just-in-time strategy.

A Scheduling System for Minimizing Inventory by Having Components Arrive