Final answer:
The correct answer is A. supply pull. A just-in-time production system is a philosophy that aims to streamline manufacturing processes by reducing inventory and minimizing waste.
Step-by-step explanation:
The correct answer is A. supply pull.
A just-in-time production system is a philosophy that aims to streamline manufacturing processes by reducing inventory and minimizing waste. In this system, the various steps in the manufacturing process are coordinated based on the demand or pull from customers. Instead of pushing supplies and materials into production based on forecasts or schedules, the supply pull approach ensures that materials are only brought into the production process when there is an actual demand for them.
For example, in the case of Marion Corporation, their just-in-time production system would mean that they produce office furniture only when there is an order from a customer. They would not stockpile large amounts of inventory in warehouses. Instead, they would rely on suppliers to deliver the necessary materials and components just in time for production.
The supply pull approach helps minimize storage costs, optimize production efficiency, and reduce the risk of excess inventory or obsolete products. It also allows companies to be more responsive to changes in customer demand or preferences.