Question

Just-in-time inventory systems a. have components arrive at a manufacturing plant just in time to enter the production process. b. always keep extra inventory on hand for emergencies. c. are implemented primarily by the manufacturing function. d. are used only by manufacturing firms. e. are valuable when there is a labor dispute with a key supplier.

Answer 1

Answer: The correct answer is "a. have components arrive at a manufacturing plant just in time to enter the production process.".

Explanation: Just-in-time inventory systems have components arrive at a manufacturing plant just in time to enter the production process.

The just-in-time method is a production organization system for factories, of Japanese origin, which allows to reduce inventory costs of raw materials and products already made. JIT is about getting supplies to the factory, or products to the customer, "just in time," that is, just before they are used and only in the quantities needed. This is done to eliminate the need for store and transfer raw materials from the warehouse to the production line.