What is meant by supplies being delivered upon demand?

What is meant by supplies being delivered upon demand?

• A. Supplies are ordered in advance
• B. Supplies are kept in surplus
• C. Supplies are only delivered when needed
• D. Supplies are scheduled for regular delivery

Answer: (C)

When supplies are delivered upon demand, it signifies a just-in-time inventory approach, where items are provided only when there is a specific requirement for them. This method helps in minimizing excess inventory, reducing storage costs, and ensuring that resources are used efficiently. By receiving supplies only as needed, organizations can respond quickly to changes in demand and avoid the overhead costs associated with holding large quantities of stock. This approach is commonly utilized in lean manufacturing and supply chain management, enhancing overall operational efficiency.

When supplies are delivered upon demand, it signifies a just-in-time inventory approach, where items are provided only when there is a specific requirement for them. This method helps in minimizing excess inventory, reducing storage costs, and ensuring that resources are used efficiently. By receiving supplies only as needed, organizations can respond quickly to changes in demand and avoid the overhead costs associated with holding large quantities of stock. This approach is commonly utilized in lean manufacturing and supply chain management, enhancing overall operational efficiency.