Utah Contractor Practice Exam

Just-In-Time deliveries will ___________.

1. Keep your inventory cost low

2. Cut down the risk of vandalism

3. Time deliveries to arrive as you need them

4. All of the above

The correct answer is: All of the above

Just-In-Time (JIT) deliveries are a strategy used in inventory management that aims to reduce the inventory holding costs by receiving goods only as they are needed in the production process. This method effectively allows a business to minimize the amount of stock it holds, which in turn keeps inventory costs low. Lower inventory levels can also decrease the risk of factors such as overstocking, which can lead to wasted resources or potential losses if items become obsolete or damaged. Additionally, JIT deliveries can help mitigate the risk of vandalism. When inventory is kept to a minimum, there is less stored on-site that could be susceptible to theft or damage. The essence of JIT is to time deliveries precisely so that materials or products arrive just when they are required for production or for sale, eliminating the inefficiencies associated with holding excess inventory. This approach emphasizes streamlined operations and efficient supply chain management, making the method beneficial in multiple ways, such as reducing costs, minimizing waste, and improving overall operational efficiency. Thus, the answer that encompasses all these benefits is correct.