Which of the following situations would present a challenge for a just-in-time (JIT)investment system?
A) Vendor managed inventory
B) Sudden increase in demand
C) Increase in the number of suppliers
D) Long-term relationships with suppliers

Question

Quizplus · Accepted Answer

A sudden increase in demand would require more inventory to be available immediately, which contradicts the JIT system of only having inventory on hand as needed. The other choices listed are actually compatible with a JIT system - vendor managed inventory can help coordinate delivery schedules, an increase in suppliers can provide more options for timely delivery, and long-term relationships with suppliers can increase trust and reliability in delivery.

Which of the Following Situations Would Present a Challenge for a Just-In-Time