In a just-in-time inventory system, suppliers:
A) deliver materials and parts in large quantities only a few times a year.
B) enjoy much lower delivery costs.
C) have a great deal of flexibility in determining when to make deliveries.
D) become more like a department in the producing firm rather than a separate business.

Question

Quizplus · Accepted Answer

In a just-in-time inventory system, the suppliers become more like a department in the producing firm rather than a separate business. This is because the system requires close coordination and communication between the producer and supplier, and the supplier has to be able to deliver materials and parts on demand and in small quantities. This often means that the supplier has to set up operations close to the producer and be able to respond quickly to changing demand. Therefore, the supplier becomes an integral part of the producer's operations, rather than just a separate supplier.

In a Just-In-Time Inventory System, Suppliers