BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
In JIT purchasing, the optimal safety-stock level is the quantity of safety stock that minimizes the sum of annual relevant stockout and carrying costs.
|
|
|
) JIT purchasing is guided solely by the EOQ model because that model emphasizes the tradeoff between relevant carrying and ordering costs.
|
|
|
In JIT purchasing, raw materials (or goods) are purchased so that products are delivered just as needed for production or sales.
|
|
|
Only disadvantage of JIT purchasing is the higher level carrying and inspection costs.
|
Detailed explanation-1: -Which of the following is true of Just-in-Time (JIT) Management? It is a system in which the company produces products only after receiving an order. Which of the following is true of service companies? Service companies carry no inventories of products for sale.
Detailed explanation-2: -In a JIT model, the manufacturer has complete control over the manufacturing process, which works on a demand-pull basis. They can respond to customers’ needs by quickly increasing the production for an in-demand product and reducing the production for slow-moving items.
Detailed explanation-3: -JIT inventory ensures there is enough stock to produce only what you need, when you need it. The goal is to achieve high volume production with minimal inventory on hand and eliminate waste.
Detailed explanation-4: -JIT purchasing means providing materials to the production facility just as they are required for use. It goes against most of the traditional ideas held by manufacturing, purchasing, and materials management. JIT purchasing is integral and is typically incorporated when describing JIT management practices.