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Question 1

Which of the following is true for Just in time – JIT. Select all that apply?

Options :

A : Aims to bring inventory levels down to minimal levels or, in its purest form, have no inventory.

B : Any disruption in a Just-in-time system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.

C :

Buyers should adopt JIT with ALL suppliers

D : Can be used as an inventory control system to mitigate over-supply.

E :

Just in time, or JIT, is an operations management or inventory control system that aims to reduce wasted resources by minimising inventory. It coordinates demand and supply by purchasing, transporting and processing materials ‘just in time’ for when they are needed in the manufacturing process.

JIT should NOT be adopted with all suppliers as this is not practical. It should be adopted when appropriate because any disruption in a JIT system, such as supplies arriving late, will have a knock-on effect which can bring the whole process to a standstill.

Answer: A,B,D

Question 2

An unfortunate side effect of using automated packing, wrapping and labelling machines is the corresponding increase in non-biodegradable waste.

Options :

A : TRUE

B : FALSE

Answer: A

Question 3

Which of the following are examples of indirect costs? More than one applies

Options :

A : Lease hire of the company vehicle

B : Packaging

C : Rent of the office

D : Wages of salaried staff

Answer: A,C,D

Question 4

An organisation can be in profit but have poor cash flow

Options :

A : TRUE

B : FALSE

Answer: A

Question 5

Which of the following are Inventory control techniques that organisations can use? Select all that apply

Options :

A : JIT

B : Kanban

C : MRP

D : PIP

Answer: A,B,C