Just-in-time inventory systems
A) are used only by manufacturing firms.
B) are implemented primarily by the manufacturing function.
C) have components arrive at a manufacturing plant just in time to enter the production process.
D) are valuable in times when there is a labor dispute with a key supplier.
E) always keep extra inventory on hand for emergencies.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems involve coordinating the delivery of components to a manufacturing plant so that they arrive just in time to enter the production process. This ensures that inventory levels are kept to a minimum, reducing storage costs and improving efficiency. While these systems are most commonly used in manufacturing, they could potentially be applied in other industries as well. Just-in-time inventory systems are not designed to keep extra inventory on hand for emergencies, making option E incorrect. Option D is also incorrect, as a labor dispute with a key supplier could disrupt the just-in-time delivery schedule and cause significant problems for the manufacturing process.

Just-In-Time Inventory Systems