Exam 21: Just-In-Time and Lean Production

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JIT refers to a production system in which goods arrive for processing just as the preceding batch is completed.

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The control of the flow of work in JIT systems is best characterized as a:

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JIT/lean systems minimize finished product inventory but have a greater reliance on work-in-process inventory.

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The small lot-sizing policy works well in a situation where both holding costs and setup costs are high.

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Which of the following contributes to the competitive advantage enjoyed by firms using JIT/lean production?

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A term that refers to the automatic detection of defects is:

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Manufacturing cells in JIT systems process similar parts for a product.

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The JIT philosophy recognizes that a buffer inventory is necessary.

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The JIT/lean approach is best used for custom operations that experience fairly unstable demand.

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