Certified Supply Chain Professional (CSCP) Practice Exam

Which strategy aims to ensure products are available precisely when needed?

1. Just-in-case inventory

2. Just-in-time inventory

3. Batch production

4. Continuous flow production

The correct answer is: Just-in-time inventory

The strategy that aims to ensure products are available precisely when needed is Just-in-time (JIT) inventory. This methodology focuses on reducing waste by receiving goods only as they are needed in the production process, thereby minimizing inventory costs and enhancing efficiency. JIT aligns production schedules closely with customer demand, ensuring that materials arrive just at the point of use rather than stockpiling them in advance. This method not only helps in reducing the holding costs associated with excess inventory but also facilitates improved cash flow and a more responsive supply chain. In a JIT system, manufacturers can promptly respond to changes in demand, allowing for a more dynamic operation that can adapt quickly to market fluctuations. Achieving this requires precise planning and coordination with suppliers to ensure timely delivery, underscoring the importance of strong relationships and communication within the supply chain. The other strategies mentioned do not have the same focus on timing and inventory levels. Just-in-case inventory centers around maintaining higher inventory levels to guard against potential shortages, which is contrary to the JIT approach. Batch production, although efficient for certain production scenarios, does not necessarily align with the immediate availability goal of JIT. Continuous flow production emphasizes a constant flow of goods rather than a timing strategy aimed at matching demand precisely.