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CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT

A manufacturer of auto components in Pune moves from a push system to JIT. Which of the following changes is most consistent with JIT purchasing?

JIT purchasing uses a few reliable suppliers under long-term contracts, with frequent small deliveries of quality-certified material. This reduces inventory and incoming inspection. Large infrequent orders, full dock inspection and price-only supplier selection are features of traditional purchasing.

  1. APlacing large quarterly orders with many suppliers to get quantity discounts
  2. BUsing a few reliable suppliers on long-term contracts with frequent small deliveries of certified qualityCorrect
  3. CInspecting every incoming lot fully at the receiving dock
  4. DChoosing suppliers solely on the lowest quoted price per unit

Explanation

JIT purchasing relies on a small number of dependable suppliers, long-term relationships, frequent small deliveries and supplier-certified quality so incoming inspection is reduced. Large quarterly orders, full dock inspection and price-only selection all go against this approach.

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