=+happen if one of our suppliers were unable to make a shipment? A supplier could fall behind

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=+happen if one of our suppliers were unable to make a shipment? A supplier could fall behind in production or have a quality problem. Without some safety stock in our materials, our whole plant would shut down.

Director of Manufacturing: If we go to just-in-time, I think our factory output will drop. We need inprocess inventory in order to “smooth out” the inevitable problems that occur during manufacturing. For example, if a machine that is used to process a product breaks down, it would starve the next machine if I

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Accounting

ISBN: 978-1111001346

23rd Edition

Authors: Carl S. Warren

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