As a new senior accountant for Troy Rugs Inc., an exotic carpet manufacturer, you have assumed new responsibility for lean accounting within the company. During your monthly analysis, you outline many areas that the company lacks in order to adopt a lean accounting system. You have observed that installation times take two days instead of a week as they should. You realize that the batch where the raw materials are stored shares 75% of the batch where the rugs are wrapped and ready for shipment, which adds up to four more days to fulfill an order. In general, the layout of the facility, as the materials used to manufacture the rugs are on the same floor in the inventory as the rugs produced, and there is no process that would separate the two or overlook the specific carpet inventory due to materials, it is not that functional. placed in the wrong area of the warehouse. You also have a note from the CEO stating that one of the company's largest yarn suppliers has gone bankrupt and is not a replacement supplier. That's why no special orders are confirmed for at least the next three months.

Questions:

1. What suggestions do you have for implementing JIT at Troy Rugs?

2. Should special orders and standard orders be produced on the same line?