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    Just-in-Time Principles

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    After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system. At the beginning of this switch, Jammu has 40 units of product in inventory. Jammu has 1,800 labor hours available in the first month of this switch. These hours could produce 450 units of product. Customer demand for this first month is 250 units. If just-in-time principles are correctly followed, how many units should Jammu plan to produce in the first month of the switch?

    (a) 250
    (b) 210
    (c) 290
    (d) 410.

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    Solution Summary

    The solution discusses the concept of just-in-time principles.