Master Technology produces neon insulator sign components on an assembly line,and suppliers deliver the needed parts in four small shipments each day.Master Technology has noticed a dramatic decrease in carrying costs using this method,but a sharp increase in delivery costs since the company must pay more for the added delivery convenience.Master Technology uses just-in-time (JIT)manufacturing.

Question

Quizplus · Accepted Answer

The description indicates that Master Technology uses JIT manufacturing, which is a method of minimizing inventory and reducing carrying costs by relying on frequent, small deliveries of parts from suppliers. The increase in delivery costs is a trade-off for the benefits of JIT.

Master Technology Produces Neon Insulator Sign Components on an Assembly