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Describe the inventory control system Kia Motors manufacturing plant uses and why the company selected the system they use. Are they satisfied with the system in use or are planning to make changes? Is their system manual or computerized?

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Final answer:

Kia Motors likely uses a computerized just-in-time (JIT) inventory control system to minimize warehousing costs and enhance quality control, requiring suppliers to be within one-day's drive of the assembly plant to respond quickly to production needs.

Step-by-step explanation:

The inventory control system used by Kia Motors manufacturing plant is likely modeled after the just-in-time (JIT) delivery system. This system was broadly adopted by American car manufacturers in the 1980s, influenced by Japanese business innovation. JIT inventory management revolves around receiving goods only as they are needed in the production process, which reduces inventory costs and improves quality control. In the case of JIT, parts for assembling cars are delivered daily, which eliminates the need for large warehouses and the potential accumulation of defective parts.

Kia Motors, like other automakers, selected this system to ensure a high level of quality control and to reduce costs related to warehousing. The JIT system requires that suppliers be located within a one-day drive of the assembly plant, leading to a proliferation of parts factories around the main plant. This intense competition among suppliers can lead to pressures on wages and benefits due to the search for low-cost, non-union labor. While I cannot confirm Kia's current satisfaction levels or plans for their system, the adoption of JIT generally indicates a preference for a streamlined, computerized inventory control system that is both efficient and cost-effective.

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