Just-in-time inventory systems:

Question

Quizplus · Accepted Answer

Just-in-time inventory systems require a high level of coordination and communication with suppliers, which can result in a closer relationship and an emphasis on quality control. By receiving parts and materials only when needed, firms can avoid overstocking and thereby reduce the risk of product defects caused by aging inventory. Therefore, JIT can help firms improve product quality. The other options are not correct: B is incorrect because JIT is still widely used in many industries, C is incorrect because JIT systems aim to minimize the amount of inventory, and D is incorrect because JIT systems do not maintain buffer stocks of inventory.

Just-In-Time Inventory Systems