ITPEC IP April 2018 Question 81

Source exam: ITPEC IP April 2018Topic: Business Industry

ITPEC IP April 2018 — Question 81 of 100

A just-in-time production system supplies only the required items, in the required quantity, at the required time in response to downstream demand. This pull approach reduces work in process, finished inventory, storage needs, and waste between production stages.

Answer (a)

Why not others:
- cell production organizes workers and equipment into flexible product-oriented cells

- build-to-stock produces in advance according to forecasts and keeps inventory

- lot production makes items in batches and can create intermediate stock

Key rule: Just-in-time uses downstream demand to pull work through the process while minimizing inventory and waiting.

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