Answer (C) is correct . Under a JIT system, the quality of parts provided by suppliers is verified by use of statistical controls rather than inspection of incoming goods. Storage, counting, and inspection are eliminated in an effort to perform only value-adding work.
Answer (A) is incorrect because Frequent receipt of deliveries from suppliers often means less need for a sophisticated inventory control system and for control personnel.
Answer (B) is incorrect because Under JIT, a central receiving area and central warehouse are not needed because deliveries are made by suppliers directly to the area of production.
Answer (D) is incorrect because With the elimination of central receiving areas and central warehouses that typically accompanies the institution of a JIT system, hard copy receiving reports are unnecessary.
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