Just-In-Time (JIT) Production Systems

question 263

Short Answer

Just-in-time (JIT) production systems
may lead to increased inventory obsolescence.
have been widely used since the Great Depression of the 1930's.
bring together all the needed materials and parts at the precise moment they are required for each production stage, not before.
keep inventory levels high so deliveries to customers can be made just in time.
increase the number of goods in process and save money by replacing stop-and-go production with smooth movement.

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Definitions:

Scarce Resources

Natural, human, and capital resources that are limited in supply and available for the production of goods and services.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of two goods that can be produced with available resources and technology.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Capital Goods

Items that are used in the production of other goods and services, rather than being bought by consumers.