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Which of the following characteristics would likely be associated with a just-in-time inventory method?

a) High safety stock levels
b) Large production batches
c) Frequent and small inventory deliveries
d) Extended lead times for suppliers

User Kanad
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Final answer:

The just-in-time inventory method primarily involves frequent and small inventory deliveries to reduce costs and improve quality control. It leads to the need for suppliers to be close to the main assembly plants and can have significant impacts on labor dynamics.

Step-by-step explanation:

The characteristic associated with a just-in-time (JIT) inventory method is c) Frequent and small inventory deliveries. This approach minimizes storage costs and reduces the risk of overstocking by receiving goods only as they are needed in the production process. High safety stock levels, large production batches, and extended lead times for suppliers are contrary to JIT principles, which emphasize efficiency and responsiveness to demand.

In the context of the automotive industry, JIT systems require suppliers to be in close proximity to the main assembly plant to facilitate timely delivery, leading to the establishment of many sub-assembly plants nearby. Quality control is enhanced because defects are identified quickly, and there is pressure on wages and benefits due to competition among parts suppliers. Moreover, the absence of large inventories at assembly plants means that any disruption at a parts supplier can have a significant impact on the entire production line, as seen in the Dayton, Ohio strike.

User Eyad Salah
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