Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior Supplies will:
A) realize significant freedom in scheduling deliveries.
B) likely increase its effort and likely experience higher transportation costs.
C) place less emphasis on quality and greater emphasis on quantity.
D) need to deliver large quantities at regularly scheduled intervals.

Question

Quizplus · Accepted Answer

Just-in-time inventory systems reduce inventory costs for producers, but they mean suppliers must make smaller, more frequent deliveries. This can result in more effort and higher costs for suppliers.

Superior Supplies' Largest Customer Recently Implemented a Just-In-Time Inventory System