Narrative 17-1
In recent years,Japanese companies such as Mitsubishi,NEC,Fujitsu,and Sony began turning to North America to manufacture Japanese products. While Sony,Panasonic,and other Japanese giants still excel at cranking out high-quality consumer electronics products-such as camcorders and TVs-by the millions,it's a different story in industries with short product cycles and factories that must build what customers order instead of churning out products in anticipation of demand. Japan's great strength-repetitive manufacturing-is becoming its greatest weakness. This production-on-demand form of management cannot depend on JIT. Instead,the North American companies rely on raw-in-process inventory,or RIP. RIP calls for keeping a reasonable quantity of varied raw materials or components on hand to meet changing customer demand.
-Refer to Narrative 17-1. Which of the following is most likely one of the primary methods used to measure inventory in the Japanese-based firms operating in North America?

Question

Quizplus · Accepted Answer

The passage mentions the shift towards a production-on-demand form of management in North American factories, which relies on raw-in-process inventory (RIP). This indicates that the companies are likely measuring their inventory turnover in order to keep track of their RIP and ensure they have enough raw materials or components on hand to meet changing customer demand. The other options, such as inventory equity and stock liability, do not seem to be relevant to the context of the passage.

Narrative 17-1 In Recent Years,Japanese Companies Such as Mitsubishi,NEC,Fujitsu,and Sony Began Turning