Which of the following is true of Just-in-Time (JIT)Management?
A) It results in more storage and insurance costs.
B) It is a system in which the company produces products only after receiving an order.
C) It promotes surplus inventory to prevent production shut-down in case of supply interruptions.
D) It requires a surplus inventory of finished goods to ensure timely, or just-in-time, delivery to customers.

Question

Quizplus · Accepted Answer

Just-in-Time (JIT) Management is a system in which the company produces products only after receiving an order. This means that the inventory is kept at a minimum level, reducing storage costs and insurance costs. JIT encourages a leaner production process to avoid surplus inventory and waste. Surplus inventory is not promoted, and finished goods are not kept in inventory as the system relies on timely, or just-in-time, delivery to customers.

Which of the Following Is True of Just-In-Time (JIT)Management