A just-in-time system of inventory control requires that manufacturers coordinate production with suppliers so that raw materials or components arrive just as they are needed in the production process.The main objective of such a system is to reduce carrying costs.

Question

Quizplus · Accepted Answer

This statement is true. Just-in-time (JIT) inventory control is a system in which materials or parts are delivered to the production line exactly when they are needed, rather than being stored in a warehouse or inventory. The goal of JIT is to minimize inventory costs by reducing the amount of inventory that a company needs to purchase, store, and manage. This is achieved by coordinating production and delivery schedules with suppliers, so that materials arrive just in time for production.

A Just-In-Time System of Inventory Control Requires That Manufacturers Coordinate