Why Do Organizations That Use Just-In-Time Inventory Favor Reliable Suppliers

question 39

Multiple Choice

Why do organizations that use just-in-time inventory favor reliable suppliers?

• A) If the supplier delivers products that are late or of unacceptable quality, the buyers do not have a reserve inventory to draw on.
• B) In the event of some modification to an existing requirement, the buyer has to consider the new information and decide what changes to make.
• C) Since this type of purchase involves the consideration of a limited number of alternatives before making a selection, any delays can hamper the buying process.
• D) Since this type of purchase involves an extensive search for information and a formal decision process.

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