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You are a Management Accountant at BTC, a company based in J-land which produces a range of high quality plain and flavoured breads sold through
You are a Management Accountant at BTC, a company based in J-land which produces a range of high quality plain and flavoured breads sold through supermarkets. Most of BTC's products are baked and wrapped in their production facility, but they also sell some frozen, unbaked dough which is baked on site in the supermarkets. BTC sources raw ingredients from a wide range of suppliers including several outside J-land. Workers have specialisms, for example one group only work on sourdough breads, another on the doughs for supermarket baking. Your senior manager is putting together a proposal to introduce just-in-time production and has asked you to produce a briefing note on how the production process will have to change if JIT is introduced. Which three of these outcomes are likely as a result of the introduction of JIT? Solution A.Production lead times will be reduced. B.The number of suppliers will be reduced. C.The production facility will have to be rearranged. D.Workers will need to be more multi-skilled. E.More money will be tied up in working capital
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