1 - In a just-in-time (JIT) environment, process problems are more visible than

Question

1 - In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment because:

A - inventories are maintained at higher levels.

B - process problems cause production to shut down immediately.

C - the push manufacturing system leads to increased inventory level.

D - the lack of work in process inventory creates problems.

2 -

Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators 27,000 Processing returned products 18,000 Scrap processing (disposal) 24,000 Rework 8,000 Preventative maintenance 30,000 Product design 46,000 Warranty work 12,000 Finished goods inspection 22,000

Explanation / Answer

1) B - process problems cause production to shut down immediately.

2) $175,000

3) D - Both A and B

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