Final answer:
The primary objective of just-in-time processing is to eliminate or reduce all manufacturing inventories, aiming for greater efficiency and minimal waste. This methodology was adopted by American car manufacturers and led to reduced warehousing needs and changes in labor dynamics, while giving workers strategic leverage in some instances. Correct option is B.
Step-by-step explanation:
The primary objective of just-in-time (JIT) processing is to eliminate or reduce all manufacturing inventories. This strategy aims to enhance efficiency and minimize waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. Originating from Japanese manufacturers and widely adopted by American car manufacturers in the 1980s, the JIT approach led to major shifts in supply chain management and labor dynamics.
Just-in-time methodologies allowed companies to minimize the need for warehousing by having suppliers deliver components on a daily basis, directly for use in the manufacturing processes. This shift significantly impacted the spatial economics of factories, changing the paradigm from the massive Ford's River Rouge facility that housed all stages of production, to the decentralized model where multiple suppliers contribute parts as needed. While this system improved quality control and reduced inventory storage costs, it also affected labor, as labor leverage was altered and wages and benefits saw downward pressure due to increased competition and the use of non-union labor.
Despite these challenges, JIT also created new opportunities for workers, who gained the power to impact the entire supply chain significantly through actions such as strikes. This was evident in the mid-1990s when unionized workers in Dayton, Ohio, caused a shutdown of General Motors' entire assembly lines by striking at a critical parts manufacturer.