Which of the following best describes the two key drivers in a just-in-time inventory system?
A)The just-in-time inventory control requires firms to maintain little to no inventory; however, it requires total quality management in all areas of operations.
B)The just-in-time inventory control requires firms to maintain large amounts of inventory; however, it requires total quality management in all areas of operations.
C)The just-in-time inventory control requires firms to maintain little to no inventory because it requires virtually no total quality management in all areas of operations.
D)The just-in-time inventory control requires firms to maintain little to no inventory and large accounts payable.

Question

Quizplus · Accepted Answer

The two key drivers in a just-in-time inventory system are maintaining little to no inventory and implementing total quality management in all areas of operations. By having little to no inventory, the system requires precise and efficient production and delivery, which is only possible with high-quality standards and processes throughout the organization. Thus, choice A correctly summarizes these two drivers. Choice B is incorrect because it mentions maintaining large amounts of inventory, which is opposite to the concept of just-in-time inventory. Choice C is incorrect because it suggests that little to no inventory eliminates the need for total quality management, which is not true. Choice D is incorrect because it only mentions one driver (little to no inventory) and adds an unrelated factor (accounts payable).

Which of the Following Best Describes the Two Key Drivers