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A firm that is deploying just-in-time manufacturing for the first time will:

A. Establish contracts with many suppliers since an interruption in supply is extremely disruptive of the production process.

B. Establish contracts with a few carefully chosen suppliers since an interruption in supply is extremely disruptive of the production process.

C. Maintain a carefully calibrated safety stock since interruptions in supply are inevitable.

D. Acquire considerable computer processing capability to manage the demands of the data-dependent kanban inventory management system.

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Question added by Deleted user
Date Posted: 2015/02/28
Lesley Lanag CMA CPA
by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

B. Establish contracts with a few carefully chosen suppliers since an interruption in supply is extremely disruptive of the production process.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option >>>>>>>>>>>>>>>>>>>>>>>>> B. Establish contracts with a few carefully chosen suppliers since an interruption in supply is extremely disruptive of the production process.

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