Which one of the following is an advantage of just-in-time (JIT)systems?
A) JIT systems reduce equipment needs by using larger lot sizes.
B) JIT systems can be implemented in any production environment.
C) JIT systems result in a decrease in safety stock and work-in-process inventory.
D) JIT systems result in an increase in manufacturing lead times.

Question

Quizplus · Accepted Answer

JIT systems are designed to reduce inventory and production lead times by producing only what is needed, when it is needed. This results in a decrease in both safety stock and work-in-process inventory, which can be a major advantage for businesses looking to reduce costs and improve efficiency. Option A is incorrect because JIT systems actually aim to reduce lot sizes in order to minimize inventory and reduce lead times. Option B is incorrect because while JIT systems can be implemented in many different environments, certain production processes may be incompatible with this methodology. Option D is incorrect because JIT systems actually aim to reduce manufacturing lead times by streamlining production processes and eliminating waste.

Which One of the Following Is an Advantage of Just-In-Time