Many U.S. manufacturers have adopted the just-in-time (JIT) purchasing principle. Concerning this trend, all of the following statements are accurate except:
A) One objective of a JIT system is to eliminate waste of all kinds from the production process.
B) Because JIT attempts to relate purchases to production requirements, the typical order size increases.
C) A significant effect of JIT purchasing has been the drastic reduction in the number of suppliers utilized by manufacturers.
D) Suppliers find that relationships with JIT customers are longer lasting.
E) Both because JIT attempts to relate purchases to production requirements, the typical order size increases and a significant effect of JIT purchasing has been the drastic reduction in the number of suppliers utilized by manufacturers.
Question 2
In contrast to innovative products, the supply chain for functional products is designed to:
A) minimize logistics and inventory costs.
B) assure low-cost manufacturing.
C) adapt production capacity to uncertain demand patterns.
D) all of the answer choices
E) both minimize logistics and inventory costs and assure low-cost manufacturing.
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