Final answer:
The primary objective of low inventories in JIT systems is to uncover recurring problems in the production processes. This strategic approach to inventory management enhances efficiency and quality control, with immediate issue detection, and calls for suppliers to be situated near the manufacturing plant.
Step-by-step explanation:
The basic objective for operating with low inventories in JIT (Just-In-Time) systems is primarily A. to uncover recurring problems in production processes. The JIT system is a management strategy that aims to increase efficiency and decrease waste by receiving goods only as they are needed in the production process. It contrasts with traditional inventory systems, where large quantities of goods are kept in storage.JIT systems highlight issues immediately because there is no buffer of extra inventory to fall back on. Quality control is improved as problems with supply or production become evident right away, preventing the accumulation of defective products. This inventory approach also encourages suppliers to be located within close proximity to the manufacturing plant, ensuring rapid delivery and fostering competition among suppliers for contracts. This can have wider implications, such as pressure on labor conditions and wages.Furthermore, the just-in-time delivery concept stands in contrast to economies of scale, where producing more units can reduce the cost per unit. While larger factories and warehouse stores benefit from economies of scale, a JIT approach focuses on lean production and minimizing inventory costs. Advances in technology and improved labor policies can also mitigate supply chain risks and enhance the overall production process.