Organizations that adopt just-in-time purchasing systems often experience which of the following?

Organizations that adopt just-in-time purchasing systems often experience which of the following?
A . A slight increase in carrying costs.
B . A greater need for inspection of goods as the goods arrive
C . A greater need for linkage with a vendors computerized order entry system.
D . An Increase in the number of suitable suppliers

View Answer

Answer: C

Explanation:

Just-in-time (JIT) purchasing systems aim to minimize inventory levels by receiving goods only as they are needed in the production process, which requires tight integration with suppliers. Vendor Linkage: JIT systems demand a highly efficient and responsive supply chain. Linking with vendors’ computerized order entry systems ensures that orders are processed quickly and accurately, supporting the JIT philosophy.

Inspection: JIT systems often rely on high-quality suppliers to minimize the need for inspection upon arrival, focusing instead on preventive measures at the supplier’s end.

Carrying Costs: A JIT system typically reduces carrying costs by keeping inventory levels low.

Supplier Base: The focus is often on a few reliable suppliers rather than increasing the number of

suppliers.

Reference: "Supply Chain Management: Strategy, Planning, and Operation," which discusses the operational requirements and benefits of JIT systems.