Final answer:
The true statement about JIT delivery is B, which states it helps keep warehouses from overflowing. This system minimizes inventory costs and demands timely delivery from nearby suppliers, thereby reducing warehousing jobs and creating competitive pressure within the supply chain.
Step-by-step explanation:
The correct answer is B:
JIT delivery helps keep warehouses from overflowing. The just-in-time system, popularized by Japanese manufacturers like Honda, involves receiving goods only as they are needed in the production process, reducing inventory levels and cutting warehouse costs. Rather than storing large numbers of car parts, these are delivered daily, aligning with production schedules. This approach enhances quality control as any defects in supplied parts become evident quickly, before large stocks accumulate. JIT also demands that suppliers are geographically close to the main manufacturing plant to ensure timely delivery, often leading to competitive pressures on wages and benefits.
This streamlined supply chain method is crucial for efficiency as it reduces the costs associated with excess inventory and warehouse management. It also underscores the significance of strategic location and transport options for factories, advocating for sites with easy access to workers, materials, and transport networks to avoid increased costs and delays resulting from traffic congestion.