An automobile manufacturer has just decided to outsource windshields instead of making them itself.Using an outside supplier under the just-in-time approach will have what immediate effect on the manufacturer's inventory management?

Question

Quizplus · Accepted Answer

Outsourcing windshields means the manufacturer no longer needs to store the raw materials for making windshields or manage the work in process inventory for windshields, thus reducing both raw material and work in process inventories.

An Automobile Manufacturer Has Just Decided to Outsource Windshields Instead