Question 1
Which of the following is
false regarding the links between JIT and quality?
◦ JIT reduces the number of potential sources of error by shrinking queues and lead times.
◦ If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
◦ JIT increases the cost of inventory.
◦ As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
◦ Inventory hides bad quality; JIT immediately exposes it.
Question 2
JIT makes quality cheaper because
◦ the cost of low quality can be hidden as inventory cost.
◦ JIT adds more buffers to the system.
◦ JIT prevents long runs of defects.
◦ B and C.
◦ A, B and C.