A manufacturer took the following actions to reduce inventory. Which of these is generally NOT accepted as a JIT action?
A) It used a pull system to move inventory.
B) It produced in ever smaller lots.
C) It required deliveries directly to the point of use.
D) It picked the supplier that offered the lowest price based on quantity discounts.
E) It worked to reduce the company's in-transit inventory.

Question

Quizplus · Accepted Answer

JIT principles focus on reducing waste and producing only what is needed, when it is needed, in the amount needed. Picking the supplier solely based on the lowest price may compromise the quality, reliability, and availability of the materials, which could lead to disruptions in the production process. As such, supplier selection should not solely be based on price, but also on their ability to provide high-quality materials consistently and on-time.

A Manufacturer Took the Following Actions to Reduce Inventory