Which of the following is true of just-in-time (JIT)?
A) JIT calls for subassemblies and components to be manufactured in very large volumes.
B) JIT offers efficiency only when the costs of storing items are lower than the costs of frequent delivery.
C) JIT is limited to the production department and cannot be applied as a companywide philosophy.
D) In JIT, a customer order triggers a factory order and the production process.
E) In JIT, external suppliers deliver raw materials to the company at least three months before production.

Question

Quizplus · Accepted Answer

JIT is a production system in which items are not produced until they are needed, and a customer order triggers the production process. Choice A is incorrect because JIT aims to minimize inventory, so manufacturing in large volumes is not consistent with this goal. Choice B is also incorrect because JIT is designed to reduce the costs of storing inventory, and frequent delivery is an essential element of JIT. Choice C is incorrect because JIT is a companywide philosophy that extends beyond the production department. Choice E is incorrect because JIT relies on external suppliers to deliver raw materials just in time for production, not several months in advance.

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