IIA Exam IIA-ACCA Topic 5 Question 71 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 71
Topic #: 5

[All IIA-ACCA Questions]

What is the most significant potential problem introduced by just-in-time inventory systems?

AThey require significant computer resources.

BThey are susceptible to supply-chain disruptions.

CThey require complicated materials-supply contracts.

DThey prevent manufacturers from scaling up or down to meet changing demands.

Show Suggested Answer

Suggested Answer: B

by Ashlyn at Mar 07, 2024, 09:08 PM

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8 months ago

Interesting, I never thought about that. It could definitely limit a company's flexibility.

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8 months ago

I personally think that preventing manufacturers from scaling up or down (D) is the biggest issue.

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9 months ago

That's true, but I believe that supply-chain disruptions are a bigger concern.

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9 months ago

But don't you think that requiring significant computer resources (A) could also be a problem?

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10 months ago

I agree, supply-chain disruptions can cause major delays in production.

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10 months ago

I think the most significant potential problem is that they are susceptible to supply-chain disruptions (B).

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