- 10 Marks
BMIS – April 2022 – L1 – Q3a – Operations strategy
Suggest five benefits a company would derive from adopting the Just-In-Time (JIT) inventory system.
Question
You are the Accounts officer for Unimech Garages, a company that provides mobile vehicle repairs for faulty vehicles on the Accra – Kumasi and Accra – Takoradi highways. The company has adopted the Just-In-Time (JIT) inventory control system for its operations. The JIT inventory control system was adopted because all repairs performed vary from vehicle to vehicle, and there is no need to stock any spare parts since the repair team has no idea of the next repairs to be conducted as well as the type of spare parts they would require. Again, this inventory system was implemented to prevent employees from committing the offence of selling stocked spare parts for their individual gains.
Required:
Suggest FIVE (5) benefits the company would derive from this inventory system. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cost reduction, Inventory Management, Just-in-Time, Service Quality, Waste Control
- Level: Level 1
- Topic: Operations strategy
- Series: APR 2022