Which of the following situations would present a challenge for a just-in-time (JIT) investment system?
A) vendor-managed inventory
B) sudden increase in demand
C) increase in the number of suppliers
D) long-term relationships with suppliers

Question

Quizplus · Accepted Answer

A sudden increase in demand would challenge a JIT investment system as it relies on having just the right amount of inventory at the right time. If demand spikes unexpectedly, the system may not be able to keep up and delays or shortages may occur. Vendors-managed inventory, an increase in the number of suppliers, and long-term relationships with suppliers do not inherently present challenges for a JIT investment system.

Which of the Following Situations Would Present a Challenge for a Just-In-Time