To maintain production, the quality of materials must be high because no buffer inventories are available to take up the slack.

Question

juin [17]

4 years ago

13

To maintain production, the quality of materials must be high because no buffer inventories are available to take up the slack.

This is especially TRUE in what case?

Business

1 answer:

Sophie [7] · Answer 1 · 2021-12-18T01:06:32+03:00

Answer:

Just in time (JIT) inventory management

Explanation:

Just in time (JIT) inventory management is a system created to lower inventory costs and increase manufacturing efficiency. JIT aligns materials and components orders with production schedules in order to reduce inventory levels to the lowest possible level.

It was developed by Toyota in order to reduce the costs of its car manufacturing processes. Once I visited a Toyota pickup factory and it was amazing to see that the whole inventory of finished engines was 4 units, and the factory produced more than 500 pickups per day.