Zoro Inc.,a consumer electronics company,does not store any of its materials in the warehouse.Instead,the company's procurement department orders small quantities of materials as and when they are required.The vendors supply the ordered material directly to the company's manufacturing unit a day or two before the production starts.This arrangement helps Zoro Inc.to reduce costs and boost efficiency.This scenario best illustrates _____.
A)continuous manufacturing systems
B)contract manufacturing
C)just-in-time inventory management
D)crowdsourcing
E)mass customization

Question

Quizplus · Accepted Answer

Zoro Inc.'s strategy of ordering materials in small quantities only as needed, with vendors delivering directly to the manufacturing unit shortly before production, exemplifies just-in-time (JIT) inventory management. This approach minimizes inventory costs and enhances efficiency by reducing the need for storage space and minimizing the risk of excess inventory.

Zoro Inc,A Consumer Electronics Company,does Not Store Any of Its Materials