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Just in time inventory

Quiz by Sarah Ayyad

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10 questions
Show answers
  • Q1
    Which of the following best describes just in time inventory management?
    A system in which goods are stored in large quantities to anticipate future demand
    A system in which goods are produced or acquired only as they are needed for use, reducing excess stock and minimizing storage costs
    A system in which goods are produced far in advance of need to ensure availability
    A system in which goods are replenished only after they have run out completely
    30s
  • Q2
    What is a key benefit of just in time inventory management?
    Higher levels of safety stock
    Increased lead times for order fulfillment
    Reduced inventory holding costs
    Greater flexibility in production scheduling
    30s
  • Q3
    What is a potential challenge of implementing just in time inventory management?
    Reduced production costs
    Supply chain disruptions can lead to delays in production
    Increased lead times for order fulfillment
    Excess inventory levels causing storage issues
    30s
  • Q4
    How does just in time inventory management impact warehouse space utilization?
    It has no effect on warehouse space utilization
    It increases the need for additional storage facilities
    It requires large amounts of warehouse space for storing inventory
    It reduces the need for excess storage space
    30s
  • Q5
    What is the primary goal of just in time inventory management?
    Maximizing excess stock levels for increased inventory security
    Maximizing storage space for inventory storage
    Minimizing waste and maximizing efficiency
    Increasing lead times and production costs
    30s
  • Q6
    What is a common strategy used in just in time inventory management to facilitate timely production?
    Relying solely on internal production capabilities
    Maintaining high levels of safety stock at all times
    Establishing strong relationships with reliable suppliers
    Avoiding communication with suppliers until orders are placed
    30s
  • Q7
    What is a potential downside of just in time inventory management in the face of unexpected events?
    Increase in overall production costs
    Elimination of lead times for order fulfillment
    Reduction in supplier reliability
    Risk of production disruptions due to lack of buffer stock
    30s
  • Q8
    How does just in time inventory management impact the cost of holding inventory?
    It has no effect on inventory holding costs
    It leads to higher inventory storage fees
    It increases the cost of holding inventory due to frequent orders
    It reduces the cost of holding excess inventory
    30s
  • Q9
    What is a key principle of just in time inventory management?
    Maintaining high levels of safety stock at all times
    Maximizing production lead times for efficiency
    Continuous improvement and waste reduction
    Minimizing communication with suppliers for cost savings
    30s
  • Q10
    What role does demand forecasting play in just in time inventory management?
    It helps in predicting future demand to ensure timely production and delivery of goods
    It has no impact on inventory management practices
    It leads to overproduction and excess stock levels
    It is not necessary in JIT as inventory levels are kept low at all times
    30s

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