JIT systems maintain inventory in small lot sizes because small lot sizes
A) increase pipeline inventory, allowing the organization to buffer against demand uncertainties.
B) increase the quality level of the product.
C) enable schedules to utilize machine capacities more efficiently.
D) increase manufacturing lead time because of the increase in waiting time.

Question

Quizplus · Accepted Answer

JIT systems aim to minimize inventory by producing in small lot sizes. This enables schedules to utilize machine capacities more efficiently by reducing waiting times and setup times. Small lot sizes also allow for easier defect detection and correction, which can lead to higher quality levels. Pipeline inventory is not increased with smaller lot sizes; in fact, it is reduced. Similarly, manufacturing lead time is reduced, not increased, with smaller lot sizes.

JIT Systems Maintain Inventory in Small Lot Sizes Because Small