Asked by Shanda Mckinney on Jun 01, 2024
Verified
Which of the following statements regarding a just-in-time (JIT) system are true?
i. Materials are purchased and goods are produced only as required.
ii. Employees are highly skilled at single tasks in order to maintain quality control.
iii. A JIT system is characterised by small lot sizes.
A) i and ii
B) i and iii
C) ii and iii
D) All of the given answers
Just-In-Time (JIT)
An inventory management system that aligns raw-material orders from suppliers directly with production schedules, aiming to reduce inventory costs and increase efficiency.
Quality Control
The process of ensuring that products and services meet specified standards of quality through testing and inspections.
Lot Sizes
Lot sizes refer to the quantity of items grouped together for manufacturing or purchasing purposes, affecting production planning and inventory management.
- Recognize the principles and benefits of just-in-time (JIT) systems in inventory management.
Verified Answer
Statement ii is false as JIT requires employees to have multiple skills in order to be flexible and able to support different stages of the production process.
Statement iii is true as JIT focuses on producing in small batches to facilitate flow and ensure that quality issues are identified and resolved quickly.
Learning Objectives
- Recognize the principles and benefits of just-in-time (JIT) systems in inventory management.
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