Question

A firm that uses a JIT purchasing philosophy probably:

A. has many suppliers.
B. has extensive inspection of purchased items at the receiving point.
C. has relatively few suppliers.
D. has deliveries of purchased items made in small lot sizes immediately before the
goods are needed in production.
E. has relatively few suppliers and has deliveries of purchased items made in small lot
sizes immediately before the goods are needed in production.

Answer 1

A firm that uses a JIT (Just-in-Time) purchasing philosophy has relatively few suppliers and has deliveries of purchased items made in small lot sizes immediately before the goods are needed in production.

Step-by-step explanation:

A firm that uses a JIT (Just-in-Time) purchasing philosophy has relatively few suppliers and has deliveries of purchased items made in small lot sizes immediately before the goods are needed in production. A firm that uses a JIT (Just-in-Time) purchasing philosophy has relatively few suppliers and has deliveries of purchased items made in small lot sizes immediately before the goods are needed in production.

JIT purchasing focuses on minimizing inventory and reducing waste by receiving goods at the exact time they are needed for production. By having a small number of suppliers and receiving small quantities of items when needed, the firm can ensure efficient production and minimize costs.