Which of the Following Statements About a Just-In-Time (JIT) Purchasing

question 37

Multiple Choice

Which of the following statements about a just-in-time (JIT) purchasing system is false?

• A)Since there is minimal backup, companies must acquire quality raw materials.
• B)Raw materials are stockpiled to avoid production disruptions.
• C)In comparison with experiences under traditional systems, manufacturers normally deal with a reduced number of suppliers.
• D)Supplier reliability tends to be more important under the JIT system than under a traditional purchasing system.
• E)The average purchase size is smaller with the JIT system than under the traditional purchasing system.

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