ITPEC IP October 2021 Question 81

Source exam: ITPEC IP October 2021Topic: Business Industry

ITPEC IP October 2021 — Question 81 of 100

Just-in-time production supplies only the required items, in the required quantity, at the required time in response to downstream demand. This pull-based flow reduces work in process, finished-goods inventory, storage cost, and waste between production stages.

Answer (a)

Why not others:
- cell production groups equipment and workers around a product family

- build-to-stock produces in anticipation of forecast demand

- lot production manufactures items in batches and can create intermediate inventory

Key rule: JIT uses downstream demand to pull materials through the process instead of producing ahead and pushing inventory forward.

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