If you were giving advice to a manager who wanted to use a just-in-time inventory management method,what would you say?
A)"Be sure to hold a lot of inventory in case you unexpectedly run out."
B)"You will need to increase your warehouse and storage space."
C)"Be prepared to find emergency supply sources."
D)"Determine how much you need,then add a little extra just to be safe."
E)None of these.

Question

Quizplus · Accepted Answer

Just-in-time inventory management requires a tight supply chain with reliable suppliers. However, unexpected events, like natural disasters or labor strikes, can cause suppliers to run out of stock or delay deliveries, leaving the business without critical components. Therefore, it is important to have contingency plans in place and find alternative suppliers that can fill in the gaps quickly. Option A is the opposite of the JIT philosophy, which aims to minimize inventory by ordering only what is needed, when it is needed. Option B is also incorrect because increasing storage space goes against the JIT principle of reducing waste and cost. Finally, option D is not recommended because JIT philosophy prioritizes efficiency and minimizing waste, and adding extra inventory will only create more cost and waste.

If You Were Giving Advice to a Manager Who Wanted