CMA Study Group

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  • 1.  CMA Part Inventory Management Question

    Posted 01-15-2022 12:06 PM

    Please explain the question if you know.
    Which changes in costs are most conducive to switching from a traditional inventory ordering system to a just-in-time (JIT) ordering system? Cost per purchase order and inventory unit carrying cost, respectively.
    Correct answer: Decreasing; Increasing
    My question is how the inventory unit carrying cost increases in the JIT system?
    I think that the carrying cost decreases in the JIT system because inventory orders frequently and use less storage, carrying cost decreases.


  • 2.  RE: CMA Part Inventory Management Question

    Posted 01-16-2022 10:30 AM
    JIT approach has the capacity, when adequately applied to the organisation, to improve the competitiveness of the organisation in the market significantly by minimizing wastes and improving production efficiency and product quality.

    Himanshu Rawat