Asked by Austin Bogle on Jun 21, 2024
Verified
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.
Verified Answer
EB
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.
Learning Objectives
- Understand the pull method of production and its impact on reducing inventory costs.
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