Exam IIA-CIA-Part3 topic 1 question 17 discussion

Actual exam question from IIA's IIA-CIA-Part3

Question #: 17
Topic #: 1

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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Highly Voted 3 years, 5 months 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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Most Recent 2 months, 1 week 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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4 years, 1 month ago

what has high quality materials got to do with the characteristic of a JIT inventory system?

upvoted 1 times

4 years, 1 month 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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