IIA Exam IIA-ACCA Topic 7 Question 81 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 81
Topic #: 7

[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 Eve at Jul 10, 2024, 11:09 AM

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Pa

5 months ago

I sure hope they have a 'just-in-case' backup plan for these just-in-time systems!

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Marleen

5 months ago

B) They are susceptible to supply-chain disruptions. Absolutely. One hiccup in the supply chain and the whole factory grinds to a halt. Not very 'just-in-time' anymore.

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Dean

5 months ago

C) They require complicated materials-supply contracts. Dealing with all those contracts sounds like a nightmare. Just-in-time must keep the legal team busy!

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Shanda

5 months ago

D) They prevent manufacturers from scaling up or down to meet changing demands. I think this is a major downside that's often overlooked. The lack of flexibility could really hurt a business.

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Isadora

5 months ago

D) They prevent manufacturers from scaling up or down to meet changing demands.

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Stanton

5 months ago

D) They prevent manufacturers from scaling up or down to meet changing demands.

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Bambi

6 months ago

I see your point, Tawna. It's important to consider all the potential problems before implementing a just-in-time inventory system.

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7 months ago

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

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