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Date May 2018 Marks available 1 Reference code 18M.1.HL.TZ0.33
Level HL Paper 1 Time zone no time zone
Command term Question number 33 Adapted from N/A

Question

The ideal situation in a just in time (JIT) environment is piece per process, which equates to one piece ordered, one piece processed and one piece shipped. All inventory held over and above this quantity is regarded as waste.

However, this is not always possible or practical. Which of the following allows the inventory to be minimised as far as possible?

A. Carry parts that are expensive

B. Carry parts that are likely to become obsolete

C. Carry parts critical to manufacture

D. Carry parts that another local company can also sell

Markscheme

C

Examiners report

[N/A]

Syllabus sections

Topic 10: Commercial production » 10.1 Just in time (JIT) and just in case (JIC)
Topic 10: Commercial production

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