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F&Ts is a manufacturing company that have recently reviewed their operations and decided that a significant overhaul is required. They have previously operated at a
F&Ts is a manufacturing company that have recently reviewed their operations and decided that a significant overhaul is required. They have previously operated at a constant level throughout the year, despite having fairly steady demand they have created a surplus of goods in quieter times and have run out of goods in the busier times. This has led to problems, some stock has had to be destroyed because it became obsolete and they have lost some regular clients in the last quarter as a result of running out of stock. F&Ts management has decided to change their strategy by implementing JIT to try and help improve the business operations and improve their reputation by avoiding wastage and client dissatisfaction. Which of the following benefits can F&Ts expect to occur if this change of strategy is successful? Select ALL that apply a. All costs will reduce b. Supplier costs will reduce c. More efficient operations d. Improved quality e. Increased flexibility f. Increased customer satisfaction g. Reduction in stock obsolescence
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