84. Increased competition, technological innovation, and a shift from mass production of standardized
products to custom-produced products in many industries have increased the need for productivity
improvements and flexibility of production systems. In response to these demands, organizations have
increased their reliance on automation and the use of advanced technologies in their operations. Which
of the following is an example of the use of automation and advanced technologies?
Flexible manufacturing system (FMS)
Just-in-time (JIT) system
Master budgeting system (MBS)
Economic order quantity (EOQ)
85. Traditionally, large manufacturers have believed that economics of scale gained through large
production runs of like, or similar, products are the best way to keep production costs down and remain
competitive. Select the most appropriate response to whether this theory is still valid.
86. The benefits of a just-in-time system for raw materials usually include.
87. Companies that adopt just-in-time purchasing system often experience
88. Bell Co. changed form a traditional manufacturer to philosophy to just-in-time philosophy. What are the
expected effects of this change on Bell’s inventory turnover and inventory as a percentage of total
assets reported on Bell’s balance sheet?
89. Which changed in costs are most conducive to switching from a traditional inventory ordering system
to a just-time ordering system?