Final answer:
An airplane parts manufacturer next to aircraft assembly companies exemplifies just-in-time manufacturing, which ensures parts are delivered as needed, allowing for increased efficiency and quality control.
Step-by-step explanation:
An airplane parts manufacturer located adjacent to airplane manufacturing companies is an example of a just-in-time manufacturing system. This system minimizes the need for large inventories by delivering parts as they are needed in the manufacturing process, necessitating that suppliers be located in proximity to the assembly plant for timely delivery. Engaging in just-in-time manufacturing allows for better quality control and cost savings, as inventory storage is reduced and defects are identified quickly. Additionally, it can lead to competitive bidding amongst suppliers, although this sometimes results in reduced labor benefits due to pressure on suppliers to decrease costs.
This strategy, born from Japanese business practices, has reshaped how suppliers, like the airplane parts manufacturer mentioned, co-locate near their primary customers to ensure efficiency in the supply chain. Large-scale auto manufacturers have utilized this strategy to streamline operations and quickly respond to assembly needs without maintaining extensive warehouses for parts, underscoring the benefits of just-in-time methods in various manufacturing sectors.