Answer (A) is correct . The objective of JIT is to reduce carrying costs by eliminating inventories and increasing the deliveries made by suppliers. Ideally, shipments of raw materials are received just in time to be incorporated into the manufacturing process. The focus of quality control under JIT is the prevention of quality problems. Quality control is shifted to the supplier. JIT companies typically do not inspect incoming goods; the assumption is that receipts are of perfect quality. Suppliers are limited to those who guarantee perfect quality and prompt delivery.
Answer (B) is incorrect because More deliveries are needed. Each shipment is smaller. Answer (C) is incorrect because In a JIT system, materials are delivered directly to the production line ready for insertion in the finished product. Answer (D) is incorrect because The need for communication with the vendor is greater. Orders and deliveries must be made on short notice, sometimes several times a day.
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