Apex Technologies produces automotive filters that are used by original equipment manufacturers of automobiles and light trucks. The company also markets a line of replacement filters that are sold through retail distributors.

Apex operates a single plant that manufactures over 100 different filters. The first manufacturing department is metal fabrication. This department stamps out casings and housings that are needed by other departments later in the production process. The metal fabrication department has implemented a IIT system with respect to raw material purchases. No other departments at Apex have yet implemented a JIT system.

Juan Spanoza is the production manager of the metal fabrication department. Although work-in-process inventories have declined significantly since the implementation of JIT, Juan is frustrated at the amount of time that he now spends coordinating with suppliers and with other departments in order to meet production demands. With no buildup of inventory in his department, Juan must now tend to problems immediately, since failure to do so could halt the department's production.

Other managers at Apex have observed Juan's problems and are reluctant to implement IIT in their areas. The plant manager, Chris O'Connor, has scheduled a meeting to discuss further JIT implementation plans for the plant with department supervisors.

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A. What are the objectives of a JIT system that Chris should communicate to the department supervisors?

B. What are some actions that Apex could take to ease the transition to a JIT system?

C. In order to successfully implement the JIT system, what arrangements must the company make with vendors? How will these arrangements be formalized?