Rooney,Inc.is a company that manufactures sugar.It is based in South Africa.The company follows the just-in-time approach in which it does not believe in stocking raw materials and maintaining an inventory,but instead relies on a strong supply chain to deliver materials in time.As a part of recent business development plans,the company decided to begin importing raw materials from Borneo.Which of the following,if true,would force the company to question its reliability on the JIT approach?
A) Regulations in Borneo have become stricter.
B) Borneo has recently been classified as an emerging economy.
C) Borneo has yet not relaxed its markets to direct foreign investments.
D) The physical infrastructure in Borneo is weak.

Question

Quizplus · Accepted Answer

The JIT approach relies heavily on a reliable supply chain that delivers materials on time. If the physical infrastructure in Borneo is weak, it could lead to delays in material delivery, potentially disrupting the production process of Rooney, Inc. Thus, this would force the company to question its reliance on the JIT approach. Options A, B, and C do not necessarily impact the reliability of the supply chain and, therefore, do not warrant a reconsideration of the JIT approach.