Question

Rooney, Inc. is a company that manufactures sugar. It is based in South Africa. The company follows the just-in-time approach in which it does not believe in stocking raw materials and maintaining an inventory, but instead relies on a strong supply chain to deliver materials in time. As part of recent business development plans, the company decided to begin importing raw materials from Borneo. Which of the following, if true, would force the company to question its reliance on the JIT approach?
A) the physical infrastructure in Borneo is weak.
B) Borneo has not yet relaxed its markets to direct foreign investments
C) Borneo has recently been classified as an emerging economy
D stricter regulations in borneo

Answer 1

Answer:

The correct answer is A) the physical infrastructure in Borneo is weak.

Explanation:

The JIT is an inventory management system that was developed in Japan in the 1980s with the automaker, Toyota, as the star of this production process. It did not take long to see it extended in Japan and, as at that time the big companies had a lot of competition and many expenses and the need to reduce these, these practices quickly extended further.

As under JIT, the level of supplies that are maintained for manufacturing are at their minimum levels, it is important to be very organized to avoid failures, suspensions and delays due to lack of components or supplies to complete the productive step.