Which of the following is/are necessary for the successful operation of a just-in-time purchasing system?
1. Long-term contracts with suppliers 2. A reliable forecast of the level of demand 3. An effective quality assurance programme
A. 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
The correct answer is D.
Sir, I didnt understand how 2 is correct ? isnt JIT focused on producing only when the order is made? so why will we need to know what the level of demand would be ?
While JIT is a pull system that aims to produce only when there is an order, having a reliable forecast helps in planning and timing orders to avoid stockouts and production delays. Thus all three components are integral to the effective functioning of a JIT system.