A consumer electronics company does not store any of its materials in the warehouse. Instead, the company's procurement department orders small quantities of materials as and when they are required. The vendors supply the ordered material directly to the company's manufacturing unit a day or two before the production starts. This arrangement helps the company reduce costs and boost efficiency. This scenario best illustrates
A) continuous manufacturing systems.
B) contract manufacturing.
C) just-in-time inventory management.
D) outsourcing.
E) mass customization.

Question

Quizplus · Accepted Answer

This scenario best illustrates just-in-time inventory management. Just-in-time (JIT) inventory management eliminates waste by using smaller quantities of materials that arrive "just in time"
for use in the transformation process and therefore require less storage space and other inventory management expense.

A Consumer Electronics Company Does Not Store Any of Its