Asked by Zachary Smith on Jul 18, 2024

verifed

Verified

In JIT partnerships, suppliers have several concerns. Which of the following is not such a concern?

A) desire for diversification
B) poor customer scheduling
C) small lot sizes
D) producing high enough quality levels
E) customers' infrequent engineering changes

JIT Partnerships

Collaborative relationships between suppliers and companies to ensure just-in-time delivery of inventory, reducing waste and improving efficiency.

Small Lot Sizes

The production strategy that involves manufacturing smaller quantities of items to reduce inventory levels and respond quickly to customer demands.

Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to minimize risk.

  • Understand the rewards and difficulties in establishing Just-In-Time relationships with suppliers.
verifed

Verified Answer

PC
Palak ChaudharyJul 24, 2024
Final Answer :
E
Explanation :
In JIT partnerships, frequent engineering changes are actually a concern because they can disrupt the smooth flow of production and require quick adjustments. Infrequent engineering changes would not be a concern as they allow for more stable production planning and processes.