Question

In supply chain management, the Just-In-Time (JIT) system aims to:

• A. Increase stock levels
• B. Reduce inventory holding costs
• C. Delay production
• D. Expand warehouse size

Hint:

JIT = Right material, right time, zero excess stock.

Answer 1

The Correct Option is B

The JIT system means ordering raw materials just when they’re needed in production — no huge stockpiles. This cuts storage costs, reduces waste, and improves efficiency. Any delay in supply, however, can stop production, so reliable suppliers are key.

Answer 2

Goal-First Approach: Ask what problem JIT is designed to solve — excess inventory sitting idle and costing money.

JIT orders materials to arrive just as they're needed in production, which directly reduces inventory holding costs — matching option 2.

Increasing stock or expanding warehouses is the OPPOSITE of JIT's goal, and delaying production isn't the aim either — JIT is about efficient timing, not slowing things down.