Which of the Following Statements About a Just-In-Time (JIT) Purchasing

Multiple Choice

Which of the following statements about a just-in-time (JIT) purchasing system is false?

A) Since there is minimal backup, companies must acquire quality raw materials.
B) Raw materials are stockpiled to avoid production disruptions.
C) In comparison with experiences under traditional systems, manufacturers normally deal with a reduced number of suppliers.
D) Supplier reliability tends to be more important under the JIT system than under a traditional purchasing system.
E) The average purchase size is smaller with the JIT system than under the traditional purchasing system.