Final answer:
The term that describes the process where raw materials are received just in time for production is Just-in-time (JIT) inventory, used extensively in the automotive industry starting in the 1980s and leading to a shift in supplier locations and labor practices.
Step-by-step explanation:
The term or concept being described by the statement that raw materials are received by each manufacturing cell just in time to go into production is A) Just-in-time (JIT) inventory. This approach minimizes the need for extensive warehousing and aims to improve quality control by ensuring that any defects are identified quickly. Just-in-time delivery was adopted by American car manufacturers such as Honda in the 1980s, leading to the construction of parts factories in close proximity to the main assembly plants to maintain the flow of daily deliveries and strict quality control. Contrasting with the earlier approach epitomized by Ford's River Rouge factory, which had extensive warehousing facilities and resulted in high wages for unionized workers, JIT manufacturing puts pressure on costs, wages, and benefits due to competition among suppliers.