As the production manager for Toyota's Georgetown, Kentucky, manufacturing plant, you're responsible for managing the inventory of all of the parts and components that go into every vehicle made there. It's a tough balancing act because you have to make sure your workers have what they need but you also have to minimize the costs associated with storing all of these unassembled components. Which of the following methods of inventory control do you think will work best for your needs?
A) Keep as many components on hand as possible to ensure that workers always have an extensive selection of materials to work with
B) Keep as many components on hand as you expect to use in the next month to ensure workers have what they need plus a little extra
C) Keep as many components on hand as you expect to use in the immediate future to ensure workers have just as much as they need, and closely monitor the flow of incoming materials to replace what's used before you run out of anything
D) Keep as few components on hand as possible, and only re-order components when the current inventory has been used

Question

Quizplus · Accepted Answer

Option C is the most efficient method for inventory control in a manufacturing setting like Toyota's Georgetown plant. It balances the need to have necessary parts available for production with the goal of minimizing storage costs and inventory excess. This approach, often associated with Just-In-Time (JIT) inventory management, reduces waste and increases efficiency by keeping inventory levels closely aligned with immediate production needs.

As the Production Manager for Toyota's Georgetown, Kentucky, Manufacturing Plant