Certified Logistics Technician (CLT) Practice Exam

In a conversation about inventory control systems, who is correct regarding just-in-time (JIT) inventory?

1. Mark is Correct

2. Sarah is Correct

3. Both are Correct

4. Neither is Correct

The correct answer is: Mark is Correct

Just-in-time (JIT) inventory is a highly effective inventory management strategy aimed at reducing waste and improving efficiency. It involves receiving goods only as they are needed in the production process, thus minimizing inventory costs and enhancing responsiveness to customer demand. If Mark is identified as correct in the conversation about JIT inventory, it suggests that his statements align with key principles of this inventory system. For instance, he may be emphasizing how JIT helps reduce excess stock and storage costs or how it can increase production efficiency by synchronizing orders with manufacturing schedules. Understanding the context is crucial. For JIT to be effectively implemented, it often requires strong supplier relationships and an efficient logistics network to ensure that materials and products arrive just in time for production and customer delivery. This minimizes the holding costs associated with inventory and reduces the risk of obsolescence in a fast-paced market. In contrast, if Sarah provided conflicting information about JIT that suggests inefficiency or risks that are typically not emphasized in standard JIT practices, it could clarify why Mark’s perspective is seen as correct. The effectiveness of Mark’s insights would be grounded in recognized JIT principles such as continuous improvement, reduction of waste, and demand-driven supply chain practices.