Better Ltd has a new CEO who is keen on improving process efficiency. She has reviewed the process documentation for the production cycle and has asked you to replace the current system of bar code scanning and recording with a less onerous system. Currently all inventory movements that occur during the production cycle are recorded, as well as when inventory is received from, or returned to, the warehouse.

The new proposal is that inventory will only be scanned when it comes out of the warehouse as a raw material or goes back into the warehouse as a finished good.

(a) Should you agree to this change? Why or why not? (LO1, LO3, LO5)

(b) If you would not agree to change the inventory scanning procedures, how would you explain this decision to the CEO? (LO1, LO5)

(c) If you would agree to remove the inventory scanning how would you justify this change to the production manager? (LO1, LO5)

(d) If you remove these inventory scans would you need to measure the cycle performance differently? (LO1, LO6)