Many U.S. manufacturers have adopted the just-in-time (JIT)purchasing principle. Concerning this trend,all of the following statements are accurate except:

Question

Quizplus · Accepted Answer

This statement is actually inaccurate. JIT purchasing attempts to minimize order size and relate purchases to production requirements, which often results in smaller, more frequent orders. Therefore, the typical order size tends to decrease rather than increase. Choice C is accurate; JIT often leads to a reduction in the number of suppliers as it encourages closer relationships with a smaller number of reliable suppliers. Choice D is also accurate; suppliers tend to benefit from longer-lasting relationships with JIT customers as they receive more reliable and consistent orders. Therefore, the correct answer is B.

Many US Manufacturers Have Adopted the Just-In-Time (JIT)purchasing Principle