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Traditional Just-in-Time
A. Longer lead times Shorter lead times
B. Inventory is an asset Inventory is a liability
C. Some scrap tolerated Zero defects desired
D. Lot size based on immediate need Lot size based on formulas
Answer : D
In traditional system (MRP), inventory level is computed based on budgeted sales and production; whereas in JIT, a push-system, inventory is only purchased when a sales order is placed by customer.
Agree with Miss Lesley Lanag.
The correct option is >>>>>>>>>>>>>>>>>>>(D)
D. Lot size based on immediate need Lot size based on formulas
Option D is the correct answer of this question.
D - Just-in-time system uses exact lot quantities as per needs only !
Its is option B.............
Answer option (D)
Details: As opined by Ms. Lesley Lenag. Good explanation.
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