The ________ uses no, or very little, safety stock.
A) basic economic order quantity system
B) materials requirement planning system
C) just-in-time system
D) FIFO method

Question

Quizplus · Accepted Answer

Just-in-time (JIT) system is a manufacturing philosophy that emphasizes on producing goods when they are needed and in the exact quantity required, eliminating the need for holding any inventory or safety stock. This approach allows companies to reduce their inventory and storage costs, as well as the risk of wastage due to spoilage or obsolescence. Conversely, options A and B require companies to hold a certain level of safety stock to prevent stockouts and manage uncertainties in demand and supply, while option D (FIFO method) is an accounting principle that determines how inventory costs are recognized and allocated.

The ________ Uses No, or Very Little, Safety Stock