Saturn's manufacturing plant uses a computerized system that directs trucks to deliver preinspected parts At specific times 21 hours a day, six days a week to one of the plant's 56 receiving docks. The delivery arrives just as it is scheduled for use on the assembly line. Saturn uses:
A) a distribution center.
B) the just-in-time concept.
C) warehousing.
D) centralized inventory control.
E) the economic order quantity approach to inventory control.

Question

Quizplus · Accepted Answer

The just-in-time (JIT) concept is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies use this strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process, which reduces inventory costs. Saturn's system of scheduling deliveries of preinspected parts to arrive just as they are needed on the assembly line is a classic example of JIT.

Saturn's Manufacturing Plant Uses a Computerized System That Directs Trucks