Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. She knows there is a huge craft fair coming up at her local high school and she has been saving all the t-shirts she has gotten that have the high school's name on it so she will have lots of bags targeted to the high school audience.
Which of the following is true about Taylor's supply chain?
A)Taylor is practicing JIT inventory.
B)Taylor has vertical integration.
C)Taylor doesn't need accurate forecasts.
D)Taylor is experiencing the bullwhip effect.

Question

Quizplus · Accepted Answer

Taylor is practicing JIT (Just-in-Time) inventory management because she only collects t-shirts as she needs them for upcoming craft fairs. She is not keeping a large inventory of t-shirts on hand, which is characteristic of JIT.

Answer: C 
 Taylor does not need accurate forecasts because she is not trying to predict demand for her bags. She is simply using the t-shirts that are donated to her and selling the bags at craft fairs.

Answer: D 
 There is no indication in the passage that Taylor is experiencing the bullwhip effect, which refers to the tendency of demand variability to increase as you move upstream in the supply chain.

Therefore, the correct answer is A and C.

Taylor Uses Old T-Shirts to Make Reusable Shopping or Grocery