Which of the following situations would present a challenge for a just-in-time (JIT)investment system?
A)increase in the number of suppliers
B)long-term relationships with suppliers
C)vendor managed inventory
D)sudden increase in demand

Question

Quizplus · Accepted Answer

A sudden increase in demand would disrupt the JIT system as it is based on maintaining inventory levels at the minimum required for production. If demand suddenly increases, the inventory would not be sufficient to meet the sudden increase in demand, leading to delays and disruptions in the production process. The other options would not present a significant challenge to a JIT system. An increase in the number of suppliers and long-term relationships with suppliers could facilitate the JIT system by ensuring a reliable supply chain. Vendor-managed inventory is a system where suppliers manage inventory levels, which could also streamline the JIT process.

Which of the Following Situations Would Present a Challenge for a Just-In-Time