Certified Supply Chain Professional (CSCP) Practice Exam

In JIT, what does the term "pull" refer to?

1. Demand-driven production

2. Excess inventory management

3. Fixed production schedules

4. Regular supplier assessments

The correct answer is: Demand-driven production

In Just-In-Time (JIT) manufacturing, the term "pull" refers specifically to a demand-driven production system. This approach emphasizes producing only what is needed, when it is needed, and in the exact quantity required. It aligns production with actual demand, rather than forecasting, thus minimizing excess inventory and reducing waste. In a pull system, production is initiated by customer demand rather than predetermined schedules. This means that materials and products are "pulled" through the production process based on real-time consumption metrics. Such a strategy allows organizations to respond quickly to changes in customer preferences and reduces the risk of overproducing goods that may not be sold. Other concepts, such as managing excess inventory or using fixed production schedules, do not align with the fundamental principles of JIT. Rather than maintaining high levels of stock that can lead to waste, JIT aims to streamline processes and maintain lower inventory levels, ensuring resources are allocated efficiently. Hence, the focus on supplier assessments relates more broadly to performance evaluations and risk management within the supply chain rather than the immediate production flow that "pull" refers to in a JIT context.