When a company switches from a traditional system to a just-in-time production and inventory system,what often happens to the quality of raw material purchased and the number of vendors that supply the firm?
A)Choice A
B)Choice B
C)Choice C
D)Choice D
E)Choice E

Question

When a company switches from a traditional system to a just-in-time production and inventory system,what often happens to the quality of raw material purchased and the number of vendors that supply the firm? 
A)Choice A 
B)Choice B 
C)Choice C 
D)Choice D 
E)Choice E

Quizplus · Accepted Answer

When a company switches to a just-in-time production and inventory system, it often reduces the quantity of raw materials purchased, which means the company needs higher quality raw materials. As a result, the number of vendors supplying the firm typically decreases, which allows the company to better manage quality control and ensure that their suppliers consistently deliver high-quality materials. Therefore, the quality of raw material purchased may increase and the number of vendors may decrease.

When a Company Switches from a Traditional System to a Just-In-Time