Final answer:
A company adopting a just-in-time inventory system would expect lower inventories and fewer units purchased per order, aiming for cost savings, quality control, and minimized excess stock.
Step-by-step explanation:
When a company embraces a just-in-time (JIT) inventory system, it anticipates significant transformations in its inventory management practices. The essence of JIT lies in maintaining lower inventories and strategically reducing the volume of units purchased in each order. This methodology is driven by a paramount objective: curbing the costs associated with storage and eliminating the burden of excess inventory. Rather than stockpiling materials, the company opts to order components precisely when they are needed for the production process.
In this dynamic system, parts are delivered on a daily basis, a practice prominently observed in industries such as automotive manufacturing. This frequent delivery schedule empowers the company to promptly respond to fluctuating demands without the necessity of maintaining large stockpiles. The ramifications of this approach extend beyond mere efficiency gains; they manifest in enhanced quality control and substantial cost savings.