CIPS Whole Life Asset Management L4M7 Question # 30 Topic 4 Discussion

CIPS Whole Life Asset Management L4M7 Question # 30 Topic 4 Discussion

L4M7 Exam Topic 4 Question 30 Discussion:
Question #: 30
Topic #: 4

Which of the following are objectives of Just-in-Time (JIT) in the control of inventory? Select TWO that apply.

    To reduce the possible effect of stockout situations by increasing the level of buffer stocks

    To have sufficient safety stock to cover shortages due to the extension of lead time

    To ensure that products are free from defects and meet the quality expectations of the customer

    To reduce work-in-progress, finished goods, and sub-assembly inventories to zero

    To ensure that the cost of holding inventory is directly proportional to the value of the inventory


A.

1 and 2 only


B.

2 and 3 only


C.

3 and 4 only


D.

4 and 5 only


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