Question

Characteristics of just-in-time partnerships do NOT include:

a. produce with zero defects.
b. large lot sizes to save on setup costs and to gain quantity discounts.
c. removal of in-transit inventory.
d. long-term contracts.
e. focus on core competencies.

Answer 1

Answer is option b i.e. large lot sizes to save on setup costs and to gain quantity discounts.

Step-by-step explanation:

The just-in-time partnership is a Japanese management strategy that increases efficiency by minimizing the inventory to manufacture products with zero defects. Toyota was the first to use this strategy to increase the quality of the manufactured product by reducing wastes and increasing productivity. This strategy does not include large lot sizes to save on setup costs but rather focuses on buying only the required amount of inventory which is required for the production. Hence, the answer is option b.