A car assembly plant had to shut down operations for a day because tyres had not been delivered - HSC - SSCE Business Studies - Question 7 - 2014 - Paper 1

The car assembly plant's shutdown due to undelivered tyres suggests that the inventory management strategy in use was likely 'Just-in-time'. This strategy is focused on receiving goods as they are needed in the production process to reduce inventory costs.

In this case, the absence of tyres indicates that the plant was relying on timely deliveries for its operations rather than maintaining adequate inventory. As a result, any delay in delivery directly impacted production, leading to the shutdown for the day. This highlights the risk associated with the Just-in-time method when suppliers fail to deliver on schedule.