Just-in-Time (JIT) purchasing is a strategy focused on minimizing inventory by receiving goods only as they are needed. This requires extremely tight coordination and rapid, accurate communication between the organization and its suppliers. To facilitate the frequent, small-lot orders and precise delivery schedules inherent in JIT, a strong technological linkage, such as a vendor's computerized order entry system or Electronic Data Interchange (EDI), is essential. This linkage enables the real-time sharing of production schedules and inventory levels, which is critical for the system's success.

A. A slight increase in carrying costs.

JIT is fundamentally designed to reduce or eliminate inventory, which directly leads to a significant decrease, not an increase, in inventory carrying costs.

B. A greater need for inspection of goods as the goods arrive.

JIT systems rely on strong supplier partnerships and quality assurance at the source. The goal is to receive zero-defect materials, which reduces or eliminates the need for incoming inspection.

D. An increase in the number of suitable suppliers.

JIT implementation typically leads to a reduction in the number of suppliers. Organizations cultivate long-term, collaborative relationships with a few highly reliable vendors to ensure quality and delivery consistency.

1. Heizer

J.

Render

B.

& Munson

C. (2020). Operations Management: Sustainability and Supply Chain Management (13th ed.). Pearson. In Chapter 16

"Lean Operations

" the text explains that JIT partnerships require suppliers to be "linked online to facilitate communication" (p. 669). It also states that JIT reduces inventory costs (p. 661) and relies on supplier quality

reducing the need for receiving inspection (p. 669).

2. Fullerton

R. R.

& McWatters

C. S. (2001). The role of information technology in the adoption of just-in-time. International Journal of Production Economics

71(1-3)

13-20. The study concludes that "IT applications

such as electronic data interchange (EDI)

are critical for the effective implementation of JIT" (p. 18)

highlighting the need for computerized linkages for coordination. https://doi.org/10.1016/S0925-5273(00)00111-4

3. MIT OpenCourseWare. (2004). 15.763J Manufacturing System and Supply Chain Design

Lecture 10: The Just-in-Time System. Massachusetts Institute of Technology. The lecture notes emphasize key JIT elements

including "Few

nearby suppliers" and "Frequent

small deliveries

" which necessitates close coordination and contradicts the idea of increasing the number of suppliers (Slide 10-11).