Which of the following BEST describes just-in-time inventory management?
A) Inventory system which stockpiles raw materials to protect against supply interruptions
B) Production system that focuses on delivering materials and goods in exactly the right quantity when needed
C) Inventory purchasing process that gains purchase discounts by buying in large quantities
D) Production system that stores surplus goods at each stage of manufacture

Question

Quizplus · Accepted Answer

Just-in-time inventory management is a production system that focuses on delivering materials and goods in exactly the right quantity when needed, eliminating excess inventory and storage costs. It aims to reduce lead times, minimize waste, and improve efficiency by relying on accurate forecasting and efficient supply chain management. Option A is incorrect because just-in-time inventory management does not stockpile raw materials but instead relies on timely delivery. Option C is incorrect because just-in-time inventory management aims to minimize inventory and does not rely on large quantity purchases for discounts. Option D is incorrect because just-in-time inventory management does not store surplus goods but instead aims to produce only what is needed when it is needed.

Which of the Following BEST Describes Just-In-Time Inventory Management