One of the traditional reasons for holding finished goods inventories is to ensure a firm's ability to meet delivery dates. The JIT solution is to
A)reduce setup costs.
B)reduce lead time.
C)use total preventive maintenance.
D)use total quality control.

Question

Quizplus · Accepted Answer

Just-in-time (JIT) focuses on reducing lead time, which allows the firm to operate with lower inventory levels while still being able to meet delivery dates. This is achieved through various methods such as reducing setup time, implementing quick response manufacturing, and establishing close relationships with suppliers. While total preventive maintenance and total quality control are important aspects of JIT, reducing lead time is the key solution for ensuring on-time delivery without accumulating high levels of finished goods inventory. Therefore, option B is the best choice.

One of the Traditional Reasons for Holding Finished Goods Inventories