Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior will:
A)realize significant freedom in scheduling deliveries.
B)likely increase its effort and likely experience higher transportation costs.
C)place less emphasis on quality and greater emphasis on quantity.
D)need to deliver large quantities at regularly scheduled intervals.

Question

Quizplus · Accepted Answer

With a just-in-time inventory system, the customer will expect deliveries to be made only when necessary, which means that Superior Supplies will likely have to increase its efforts to ensure timely deliveries. It may also need to make smaller and more frequent deliveries, which could increase transportation costs.

Superior Supplies' Largest Customer Recently Implemented a Just-In-Time Inventory System