ITPEC IP October 2025 Question 91

Source exam: ITPEC IP October 2025Topic: Business Industry

ITPEC IP October 2025 — Question 91 of 100

JIT procures and supplies only what is needed, when it is needed, in the needed quantity — this minimizes work-in-process and other inventory between production stages.

Just-in-time production synchronizes material flow with actual demand. Lower inventory reduces storage cost and exposes process problems, but it also requires reliable suppliers, stable quality, short lead times, and accurate coordination because disruptions have little buffer.

Answer (c)

Why not others:
- (a) BPO outsources business processes to an external provider

- (b) CIM integrates manufacturing activities through computer systems

- (d) OEM manufactures products that another company sells under its brand

Key rule: JIT is an inventory and production-flow principle; its signature is delivering each item at the required time and quantity rather than holding excess stock.

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