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JIT system

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › JIT system

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by IAW3005.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 17, 2025 at 11:55 am #718795
    Aleezah
    Participant
    • Topics: 12
    • Replies: 11
    • ☆

    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 ?

    August 17, 2025 at 9:04 pm #718812
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1589
    • ☆☆☆☆☆

    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.

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