Firms using just-in-time inventory policies will choose suppliers on the basis of their delivery and inventory performance.

Question

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A key aspect of just-in-time inventory policies is to receive goods from suppliers exactly when they are needed, minimizing the amount of inventory held by the firm. For this reason, firms using just-in-time policies will prioritize suppliers who have a proven track record of on-time delivery, accurate and reliable inventory management, and minimal defects or quality issues.

Firms Using Just-In-Time Inventory Policies Will Choose Suppliers on the Basis