Certified Production & Operations Manager (POM) Practice Exam

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Get ready for the Certified Production and Operations Manager Test. Study with multiple choice questions and flashcards. Receive hints and explanations for each question. Excel in your exam!

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What is the primary goal of just-in-time (JIT) inventory management?

To increase inventory levels
To minimize stockouts and excess inventory
To automate all inventory processes
To ensure maximum utilization of resources

The correct answer is: To minimize stockouts and excess inventory

The primary goal of just-in-time (JIT) inventory management is to minimize stockouts and excess inventory. This approach focuses on producing or ordering only what is needed, when it is needed, in the quantity that is needed. By implementing JIT, companies aim to reduce waste associated with holding excessive inventory and the costs tied to stockouts, which can lead to missed sales and dissatisfied customers. JIT encourages a streamlined production process where inventory is closely aligned with demand, thus improving efficiency and reducing overall operational costs. Effective JIT practices help organizations maintain a smoother workflow and better respond to customer needs without overcommitting resources to unnecessary inventory. This creates a balance in inventory levels that supports operational effectiveness and customer satisfaction.