Asked by Austin Bogle on Jun 21, 2024

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Which of the following statements regarding the pull method is/are true?
i. Goods are produced in each manufacturing stage only as they are needed at the next stage.
ii. This method reduces work-in-process inventory.
iii. This method reduces inventory handling and its associated non-value-added cost.

A) i and ii
B) i and iii
C) ii and iii
D) All of the given answers

Pull Method

A manufacturing and inventory strategy where production is based on customer demand rather than forecasting.

Work-In-Process Inventory

Goods that are in various stages of the production process but are not yet completed.

Non-Value-Added Cost

Expenses that do not contribute to the value or functionality of a product or service, often targeted for reduction or elimination.

  • Understand the pull method of production and its impact on reducing inventory costs.
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Ethan BrunetJun 21, 2024
Final Answer :
D
Explanation :
The pull method, also known as Just-In-Time (JIT) production, is a method of production where goods are only produced as they are needed at the next stage, reducing work-in-process inventory. This method also reduces inventory handling and its associated non-value-added cost. Therefore, all three statements regarding the pull method are true.