Just-In-Time Inventory Management Quiz

What is a primary goal of Just-In-Time inventory management?

• To increase production time

• To increase storage space

• To reduce inventory holding costs

• To stockpile products

Who is often credited as the father of JIT?

• James Wac

• Kichiro Toyota

• Taiichi Ono

• Henry Ford

Which company is known for using JIT to reduce lead times by 40%?

• Dell

• Burger King

• Nike

• Zara

How does Zara benefit from JIT in the retail industry?

• By reducing the number of stores

• By increasing product prices

• By aligning sales and production geographically

• By increasing warehouse space

What is one of the major benefits of JIT?

• Increased inventory waste

• Higher warehouse costs

• More control over manufacturing

• Longer production times

Why is local sourcing important in JIT?

• It requires more storage space

• It reduces transportation time and cost

• It complicates the supply chain

• It increases transportation costs

What is a significant risk of relying on JIT?

• Unreliable suppliers

• Higher storage costs

• Increased production time

• Excessive inventory

How did the global pandemic highlight a weakness in JIT?

• By increasing demand for products

• By increasing warehouse space

• By disrupting trade with lockdowns

• By reducing the need for suppliers

What is a potential drawback of JIT related to technology?

• Costly technology investments

• Simple implementation

• Inexpensive technology

• No need for technology

What should companies have in place to mitigate JIT risks?

• Longer lead times

• Fewer suppliers

• A backup plan

• More inventory