Which of the following is TRUE of Just-in-Time (JIT)Management?
A) It results in more storage and insurance costs.
B) It is a system in which the company produces products only after receiving an order.
C) It promotes surplus inventory to prevent production shut-down in case of supply interruptions.
D) It requires a surplus inventory of finished goods to ensure timely, or just-in-time, delivery to customers.

Question

Quizplus · Accepted Answer

JIT management is a system in which the company produces products only after receiving an order. It aims to minimize inventory costs by reducing surplus inventory and promoting efficient production processes. Option A is incorrect because JIT management aims to minimize storage costs. Option C is incorrect because JIT management aims to reduce surplus inventory, not promote it. Option D is incorrect because JIT management does not require surplus inventory of finished goods, as it aims to produce goods just in time for delivery.

Which of the Following Is TRUE of Just-In-Time (JIT)Management