Just in Time (JIT) inventory systems aims to do which of the following?
A)To increase stockholding, thereby avoiding stockouts
B)To reduce lead times and inventory levels
C)To reduce the purchasing costs by buying in bulk
D)To increase the quality of customer service by 100% accurate fulfilment

Question

Quizplus · Accepted Answer

JIT inventory systems aim to reduce the lead times and inventory levels by relying on quick and frequent deliveries of small quantities of goods. This helps in reducing the waste of holding excess inventory and the cost associated with it while ensuring that necessary goods are available when needed. Options A and C are incorrect as JIT aims to minimize stockholding and avoid buying in bulk to reduce costs. Option D is not entirely accurate as JIT aims to improve product availability and reduce waste, but not necessarily guarantee 100% accurate fulfillment.

Just in Time (JIT) Inventory Systems Aims to Do Which