Question

Rooney, Inc. is a company that manufactures sugar. It is based in South Africa. The company follows the just-in-time approach in which it does not believe in stocking raw materials and maintaining an inventory, but instead relies on a strong supply chain to deliver materials in time. As part of recent business development plans, the company decided to begin importing raw materials from Borneo. Which of the following, if true, would force the company to question its reliance on the JIT approach?

A) the physical infrastructure in Borneo is weak.

B) Borneo has not yet relaxed its markets to direct foreign investments

c) Borneo has recently been classified as an emerging economy

D stricter regulations in borneo

Answer 1

​​Rooney Inc. uses the just in time approach.

This approach requires strong physical infrastructure at location where the Rooney Inc. sources its raw materials so that raw materials are delivered to the company at fast pace and in time to undertake production.

Now, Rooney Inc. has decided importing the raw material from Borneo.

For continuing with its JIT approach, raw materials from Borneo should reach Rooney Inc. in time as needed.

This could only be possible if Borneo has strong physical infrastructure in terms of roads, railways, transportation etc.

If the physical infrastructure in Borneo is weak then this would force the company to question its reliance on the JIT approach.

Hence, the correct answer is the option (A).