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JIT

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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September 12, 2020 at 5:10 am #585227
AverageAndy
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- Topics: 128
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Dear John sir,
Came across this question in a mock and found myself really confused. I actually don’t understand why the following statement is true?
An important feature of throughput accounting is the assumption of just in time processing. Which of the following statements about JIT are true?
(i)It can often force suppliers to become surrogate stock holders.
Thanks!
September 12, 2020 at 9:20 am #585270
John Moffat
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JIT requires our suppliers to be able to deliver to us immediately as required so that we do not have to keep high levels of stock.
For the suppliers to be able to do this means that they are having to hold stock (instead of us) 🙂
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