Drive-In-Style Motors Follows a Traditional Manufacturing System

Multiple Choice

Drive-in-Style Motors follows a traditional manufacturing system. It produces a fixed number of cars every month. It is now planning to switch to a system of manufacturing where workers go to the source of required parts and withdraw them based on requirements. In this scenario, which of the following is most likely to occur if Drive-in-Style Motors implements this plan?

A) Its inventory levels will increase significantly when the demand is low.
B) Its component parts and subassemblies will be replenished only when needed.
C) Its finished goods inventory will decrease, but raw materials and work-in-process inventories will increase.
D) Its workers, at any given process, will produce units before they are needed.