Final answer:
Option A. just-in-time strategy involves coordinating the arrival of components within the supply chain at the exact needed times, which can be risky but improves efficiency and quality control. It was adopted in the American auto industry in the 1980s, reducing warehousing costs but also creating vulnerabilities in the supply chain.
Step-by-step explanation:
Although it can be risky, a just-in-time strategy is based on knowing exactly when components would arrive within the supply chain. The fundamental idea behind the just-in-time strategy is to minimize warehousing costs and to maintain an efficient flow of goods within the production process, getting parts delivered exactly when they are needed. This approach was notably adopted by American car manufacturers in the 1980s, following Japanese business innovations. By having parts like bumpers, tires, and fenders delivered daily, manufacturers like Honda were able to eliminate many warehousing jobs. This method not only reduces costs but also improves quality control, as any defects from suppliers become evident much quicker than if parts were to be stored in large quantities.
However, this model does put significant pressure on the surrounding sub-assembly plants to deliver within strict time frames and maintain high-quality standards, and creates vulnerabilities wherein even a single parts supplier encountering issues, like a strike, could halt the entire supply chain, as evidenced by the unionized factory example in Dayton, Ohio in the mid-1990s.