Which one of the following statements is TRUE regarding JIT inventory?
A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
D) It is minimized with large lot production.
E) It increases if setup costs decrease.

Question

Quizplus · Accepted Answer

JIT inventory is the minimum inventory needed to keep a perfect system running, as it aims to reduce excess inventory while ensuring production needs are met. Options A, C, D, and E are incorrect as JIT inventory does not exist "just in case," does not hide variability, is not minimized through large lot production, and does not increase if setup costs decrease.

Which One of the Following Statements Is TRUE Regarding JIT