Companies utilizing JIT systems generally have
A) many suppliers to assure that material shortages never occur.
B) suppliers that are located nearby to decrease delivery lead time.
C) suppliers that are willing to accept short-term contracts.
D) suppliers who are low-cost producers.

Question

Quizplus · Accepted Answer

JIT (Just-in-Time) systems require suppliers to deliver materials and components precisely when they are needed in the production process, without holding any inventory in between. Therefore, having suppliers located nearby can significantly reduce delivery lead time, which is crucial for meeting production schedules and avoiding stockouts. Having multiple suppliers (A), short-term contracts (C) or low-cost producers (D) are unrelated to the effectiveness of JIT systems.

Companies Utilizing JIT Systems Generally Have