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Paper 1 · Quality and Production

Under a just-in-time system, materials are

Aordered after the finished goods have been sold
Bsupplied free of charge by the enterprise's customers
Cdelivered only as production needs them, cutting storage costs
Dbought in bulk once a year and stored until they are required
Explanation: Just-in-time keeps stock as close to zero as possible by having suppliers deliver small quantities exactly when production calls for them. That frees the cash and space that stock would tie up, though it depends on reliable suppliers, since a single late delivery can stop the line.

Derived from ZIMSEC Business Enterprise Skills Paper 1, Specimen Paper (edition A), Q6

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