Question

Melco, a furniture manufacturer, stocks excess inputs in a warehouse as a measure to meet sudden upturns in demand. This is an example of

a) flexible manufacturing system.
b) process reeingineering.
c) total quality management.
d) justi-in-time inventory.
e) just-in-case inventory.

Answer 1

Melco using a warehouse to stock excess inputs to handle unexpected demand exemplifies 'just-in-case inventory', which is different from 'just-in-time inventory' that reduces inventory levels and relies on regular, prompt deliveries.

Step-by-step explanation:

Melco, a furniture manufacturer, stocks excess inputs in a warehouse as a measure to meet sudden upturns in demand. This strategy is an example of e) just-in-case inventory. Just-in-case inventory refers to the practice of keeping extra inventory on hand to guard against potential demand surges or supply chain disruptions, which contrasts with just-in-time inventory, that minimizes inventory and relies on frequent, timely deliveries.