Which of the following is true regarding JIT systems?
A) JIT systems do not have backup inventory.
B) JIT usually entails less frequent deliveries.
C) JIT requires manufacturers to add new warehouses.
D) JIT requires suppliers to respond to very short order lead times and the customer's production schedule.
E) Manufacturers must locate their facilities next to important customers in order to practice JIT.

Question

Quizplus · Accepted Answer

JIT systems require suppliers to respond quickly to short lead times and the customer's production schedule, as the inventory levels are usually low or non-existent. Option A is incorrect as JIT systems do have backup inventory in case of emergencies. Option B is also incorrect as JIT often involves more frequent deliveries. Option C is incorrect as JIT aims to reduce the need for warehouses. Option E is incorrect as JIT does not require manufacturers to be located next to customers, but rather focuses on efficient inventory management and timely deliveries.

Which of the Following Is True Regarding JIT Systems