Ace the Certified Logistics Associate (CLA) 2025 Challenge – Gear Up for Success!

Question: 1 / 400

Define “Just-in-Time” (JIT) inventory management.

A strategy that focuses on high inventory levels

A method that aligns supplier orders with production schedules

Just-in-Time (JIT) inventory management is a strategy that aims to minimize inventory levels while ensuring that materials and products arrive just as they are needed in the production process. By aligning supplier orders closely with production schedules, JIT reduces the amount of inventory on hand, thereby lowering holding costs and reducing waste. This method allows companies to respond more flexibly to customer demand while optimizing their operational efficiency.

The essence of JIT is to streamline the supply chain and create a seamless flow of materials, which minimizes delays and congestion in inventory management. When suppliers understand the production schedules, they can deliver the necessary components precisely when they are needed, eliminating excess stock and ensuring that resources are utilized most effectively.

The other options are not aligned with the principles of JIT inventory management. High inventory levels, outsourcing logistics services, and forecasting demand do not capture the purpose and functionality of JIT, which primarily focuses on synchronization between suppliers and production to enhance efficiency and reduce costs.

Get further explanation with Examzify DeepDiveBeta

A form of outsourcing logistics services

A technique used for forecasting demand

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy