An implication of the demand-pull nature of the JIT production process is that
A)finished goods inventories must be available to meet customer demand,although raw material is delivered on an as-needed basis.
B)more storage space for inventories is necessary.
C)finished products are packaged and shipped to customers immediately,thus requiring minimal finished goods inventories.
D)problem areas become less visible as inventories are reduceD.

Question

Quizplus · Accepted Answer

The demand-pull nature of JIT production process means that finished products are packaged and shipped to customers immediately, thus requiring minimal finished goods inventories. This implies that there is no need for excessive storage space for inventories or for maintaining large finished goods inventories. Additionally, problem areas become more visible as inventories are reduced.

An Implication of the Demand-Pull Nature of the JIT Production