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Narrative 18-1 In Recent Years, Japanese Companies Such as Mitsubishi, NEC, Fujitsu

Question 91

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Narrative 18-1
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 the Narrative 18-1.A worker noticed that the Hyundai Sonata and SG 350 sedans had identically sized spare tires,but different-sized spare tire covers.How does using the same spare tire cover for both cars save Hyundai $100,000 a year and increase the company's productivity?


A) It decreases confusion.
B) It gets the same output for fewer inputs.
C) It increases inventory of only one item.
D) It gets more inputs for more outputs.

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