Question

A scheduling system for minimizing inventory by having components arrive exactly at the moment they are needed and finished goods shipped as soon as they leave the assembly line best describes a ________ strategy. (from Chapter 9)

Answer 1

Just in time strategy

Step-by-step explanation:

Just-in-time (JIT) is an inventory management strategy where raw materials are bought when they are required. Goods are produced to meet actual customer needs. Under JIT, the company does not hold safety stocks and operates on low levels of inventory. Sales activities trigger the production process.

By ordering raw materials when they are needed, this strategy saves the business money by reducing inventory overhead costs. For JIT to be successful, it requires a network of reliable suppliers. Managers must accurately forecast demand to avoid under or over-production. JIT has the advantage of increased efficiency and reducing wastage of resources. The business does not need to tie a lot of its capital in inventory. Vehicle manufacturers like the Toyota corporation operate on JIT.