The JIT solution
A)requires carrying materials inventory in order to lower the cost of inventory without production delays.
B)requires selection of vendors based on lowest cost alone.
C)exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement.
D)requires a solid forecast to push production.

Question

Quizplus · Accepted Answer

The JIT solution emphasizes on reducing inventory and lead time by working closely with suppliers. By negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement, a company can ensure a steady supply of high-quality materials while minimizing inventory costs. Selection of vendors based on lowest cost alone may compromise quality, and a solid forecast may not be always reliable.

The JIT Solution