Jim, an efficiency expert, proposes the "just-in-time" inventory method to Roger, the CEO of Neptune Inc. If Roger is to accept the proposal, which of the following changes is he most likely to implement in Neptune Inc.?
A)He is likely to avoid made-for-order method of manufacturing.
B)He is likely to create a larger storage space for inventories.
C)He is likely to introduce processes that support lean production.
D)He is likely to manufacture mass products well ahead of demand.
E)He is likely to stock a backup of supplies for emergency.

Question

Quizplus · Accepted Answer

Organizations that try to increase efficiency via lean production techniques often try to minimize the stockpile of inputs via "just-in-time" inventory control procedures. In some cases, inventories are being abandoned altogether. Companies at the edge of the lean production process do not even manufacture any product until customers actually place an order for them.

Jim, an Efficiency Expert, Proposes the "Just-In-Time" Inventory Method to Roger