When Brian took over the position of purchasing manager for Gray Lumber Company,a regional building materials supply company,he found a JIT system in place,but in spite of that,the company had frequent problems related to inventory.Shipments were often late or incomplete,there was little communication from the company's vendors,and only superficial attempts were being made to address the problems.For companies like Gray Lumber,the critical factor in having a successful JIT system is
A) reducing inventory.
B) shared data.
C) EDI systems.
D) CPFR systems.
E) cooperation.

Question

Quizplus · Accepted Answer

Cooperation is crucial in ensuring a successful JIT system for companies like Gray Lumber. This includes cooperation between the company and its vendors to ensure timely and complete shipments, as well as communication regarding inventory levels and needs. Without cooperation, the JIT system may not function effectively and problems related to inventory can persist. Shared data, EDI systems, and CPFR systems can all support cooperation but are not the critical factor in themselves.

When Brian Took Over the Position of Purchasing Manager for Gray