A supplier's ability to make on-time deliveries is the critical factor in the selection process for firms that have adopted an inventory management system called ________.

Question

Quizplus · Accepted Answer

The statement suggests that the inventory management system adopted by the firms is a just-in-time (JIT) system, which relies on suppliers to make frequent and timely deliveries. In such a system, a disruption in the supplier's delivery schedule can cause a significant impact on the production process, making on-time deliveries critical for the selection of suppliers. The other options, such as direct distribution, electronic data exchange, quick warehousing, or computer-assisted manufacturing, may not necessarily require the same level of emphasis on delivery reliability as JIT.

A Supplier's Ability to Make On-Time Deliveries Is the Critical