Which of the following statements about the just-in-time (JIT)system is true?

Question

Quizplus · Accepted Answer

The JIT system is designed to work in situations where demand and forecasting are reliable, allowing for the production of goods to be timed so that they arrive just in time to meet customer demand. Maintaining a reserve inventory goes against the principles of the JIT system since it increases inventory costs and could lead to waste. Similarly, the JIT system is not designed for situations where inventory needs to be stored over significant periods of time since this also leads to higher inventory costs.

Which of the Following Statements About the Just-In-Time (JIT)system Is