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A manufacturer has a production facility that requires 12,677 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead ti

User ImFonky
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Final answer:

This incomplete question seems to involve just in time delivery in manufacturing, a practice that improves efficiency and quality control but has socioeconomic implications. It also discusses a production ratio example demonstrating how input leads to a certain output, which is a separate concept from just in time delivery.

Step-by-step explanation:

The scenario described pertains to the application of just in time delivery and inventory management in a manufacturing setting. It appears that the student's question is incomplete as the information about lead time from the supplier is missing. However, in the absence of that information, we can discuss the principles and impacts of this system. Adopted from Japanese business innovations in the 1980s by companies like Honda, just in time delivery involves having components delivered as they are needed in the production process rather than being stored in warehouses.

This generates efficiency and higher quality control but can also have socioeconomic implications, such as driving the establishment of supplier factories in close proximity to assembly plants, competition among sub-assembly plants for contracts, and putting pressure on labor costs, potentially affecting wages and unionized workforces. The approach can be beneficial for companies to reduce storage costs and streamline production, but it also puts demands on suppliers to be reliable and quick with their deliveries.

Another aspect, unrelated to just in time delivery, involves the production ratio mentioned in the question. Here, it is explained that an operation with a ratio of 1.25:1 for output to input, with a total production of 250,000 liters (L), required 200,000 L of input to deliver 50,000 L of output to market. This numerical example illustrates how ratios can be applied to understand production requirements and outputs.

User Nicktar
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