Supply Chain Management Professional (SCMP) · Question
What is the main challenge associated with using 'just-in-time' (JIT) inventory systems?
JIT systems rely on precise timing, making them vulnerable to supply chain disruptions, which can quickly lead to stockouts.
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Question: What is the main challenge associated with using 'just-in-time' (JIT) inventory systems?
Answer options:
- Increased inventory holding costs. ✅ Higher risk of stockouts if supply is disrupted.
- Reduced need for supplier collaboration.
- Excessive buffer stock accumulation.
Correct answer: Higher risk of stockouts if supply is disrupted.
Explanation: JIT systems rely on precise timing, making them vulnerable to supply chain disruptions, which can quickly lead to stockouts.
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