A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy.
A)just-in-time
B)stockless
C)bullwhip
D)safety stock

Question

Quizplus · Accepted Answer

Just-in-time strategy involves scheduling the arrival of components exactly when they are needed, minimizing the inventory of raw materials and finished goods in the process. This technique helps to reduce manufacturing lead times, decrease inventory costs and increase production efficiency. Therefore, choice A is the best answer. Stockless strategy involves the elimination of inventory entirely, which may not be feasible for every organization. The bullwhip effect is a phenomenon that causes fluctuations in inventory due to demand forecasting errors. Safety stock is an additional inventory maintained as a buffer against uncertainties in demand and supply.

A Scheduling System for Minimizing Inventory by Having Components Arrive