If the goals of jit partnerships are met, which of the following is a result?
Options:
A. For incoming goods, receiving activity and inspection are outsourced.
B. In-transit inventory falls as suppliers are located closer to facilities.
C. Suppliers maintain a variety of customers to reduce risk.
D. In-plant inventory replaces in-transit inventory.
E. All of the above are consequences of meeting the JIT partnership goals.
The Correct Answer Is:
B. In-transit inventory falls as suppliers are located closer to facilities.
Correct Answer Explanation:
Just-in-Time (JIT) partnerships aim to streamline supply chains, reduce waste, and improve efficiency by fostering close relationships between suppliers and manufacturers. Let’s break down the provided options and explain why each one may or may not be a consequence of meeting JIT partnership goals.
B. In-transit inventory falls as suppliers are located closer to facilities.
JIT partnerships often involve locating suppliers nearer to manufacturing facilities. This proximity reduces the time and distance goods need to travel, leading to decreased in-transit inventory.
When suppliers are closer, companies can receive materials more quickly, allowing for smaller, more frequent deliveries and reducing the need to stockpile goods in transit.
Now, let’s explore why the other options are not the correct consequences of meeting JIT partnership goals:
A. For incoming goods, receiving activity and inspection are outsourced.
The JIT philosophy aims to streamline processes and reduce waste within the supply chain. While efficiency is a key component, outsourcing receiving activity and inspection may not always align with JIT goals.
JIT emphasizes close collaboration between suppliers and manufacturers to ensure quality and timely delivery. Instead of outsourcing, JIT often involves building strong relationships and integrating quality control measures directly into the production process, rather than relying on external parties for inspection and receiving activities.
The emphasis is on minimizing lead times and inventory, not necessarily on outsourcing these crucial functions.
C. Suppliers maintain a variety of customers to reduce risk.
The principle of JIT is to optimize inventory levels and minimize waste by synchronizing production with demand. While risk diversification through multiple customers might be a prudent strategy for suppliers in general business practice, it’s not inherently linked to the core goals of JIT partnerships.
JIT focuses on closer relationships with a limited number of reliable suppliers, fostering collaboration and trust to ensure a steady and timely supply of materials or components, rather than diversifying customer bases to mitigate risk.
D. In-plant inventory replaces in-transit inventory.
The essence of JIT is to reduce overall inventory levels throughout the supply chain, including in-transit and in-plant inventory. The goal is to minimize inventory holding costs, reduce waste, and improve efficiency.
However, JIT does not advocate for merely replacing one form of inventory with another. Instead, it emphasizes lean principles, just-in-time deliveries, and efficient production scheduling to minimize the need for excessive inventory at any stage of the production process.
E. All of the above are consequences of meeting the JIT partnership goals.
JIT partnerships primarily focus on lean manufacturing, reducing waste, and improving efficiency by optimizing the flow of goods throughout the supply chain. While aspects of the other options may align partially with JIT principles, claiming that all provided options are direct consequences of JIT partnership goals oversimplifies the nuanced objectives of JIT.
JIT aims to streamline operations, minimize inventory, and build collaborative relationships rather than encompassing all the listed outcomes as direct consequences of its goals.
In essence, JIT partnerships aim to establish efficient, streamlined supply chains with a focus on minimizing waste, reducing inventory, and fostering close collaboration between suppliers and manufacturers to optimize production and delivery processes.
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I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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