Ford Motor Company has decided to switch to a pull system of manufacturing and distribution for its vehicles.Which one of the following is most likely to occur?
A)Inventory levels will increase.
B)Component parts and subassemblies will be replenished only when needed.
C)Dealer parking lot space will need to be increased.
D)Finished goods inventory will decrease, but raw materials and work-in-process inventories will increase.

Question

Quizplus · Accepted Answer

In a pull system, production is based on actual demand rather than forecasts, so component parts and subassemblies are replenished only when needed, reducing excess inventory.

Ford Motor Company Has Decided to Switch to a Pull