CIPS Exam L4M7 Topic 11 Question 52 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 52
Topic #: 11

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

Show Suggested Answer

Suggested Answer:

Just-in-Time (JIT) aims to:

Improve quality by ensuring defect-free products that meet customer expectations.

Reduce inventory levels: The JIT approach minimizes holding costs by producing and delivering goods as needed.

Whole-life asset management values JIT for optimizing inventory control, reducing waste, and enhancing quality while keeping storage costs minimal.

by Ming at Jan 11, 2025, 11:05 PM

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4 days ago

I believe the correct answer is D, which includes reducing inventories to zero and ensuring inventory holding costs are proportional to value.

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5 days ago

I agree with you, Major. Having zero inventories can help in reducing waste and improving efficiency.

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5 days ago

Hmm, reducing inventory to zero? That's a bold move, but I'm not sure it's realistic. Gotta have some backup, you know?

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13 days ago

I think the objectives of JIT are to reduce work-in-progress and finished goods inventories to zero.

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