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Exam IIA-CIA-Part3 topic 1 question 17 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 17
Topic #: 1
[All IIA-CIA-Part3 Questions]

Which of the following is a characteristic of just-in-time inventory management systems?

  • A. Users determine the optimal level of safety stocks.
  • B. They are applicable only to large organizations.
  • C. They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.
  • D. They rely heavily on high quality materials.
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Suggested Answer: D 🗳️
by chung002 at Nov. 25, 2020, 5:44 a.m.

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CABhawna
Highly Voted 4 years ago
Implementing JIT relies heavily on few suppliers with high quality material to be effective and inventory levels maintained are just minimal.
upvoted 5 times
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34205ac
Most Recent 9 months ago
JIT depends on few suppliers so that they will provide the required quality and to decrease inspection costs and time of getting the materials
upvoted 1 times
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chung002
4 years, 8 months ago
what has high quality materials got to do with the characteristic of a JIT inventory system?
upvoted 1 times
chung002
4 years, 8 months ago
it is probably due to lowering the risk of sales return for defective goods disrupting the JIT ecosystem.
upvoted 3 times
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