Final answer:
The just-in-time delivery method, adopted by American car manufacturers in the 1980s, reduced warehousing needs and improved quality control while impacting labor costs and benefits due to competitive pressures among suppliers seeking contracts with main manufacturers.
Step-by-step explanation:
Just-In-Time Delivery in Automobile Manufacturing
The concept of just-in-time delivery, adopted by American car manufacturers such as Honda in the 1980s, revolutionized the auto industry by reducing the need for large warehousing spaces and improving quality control. Parts are delivered daily to the main assembly plants, ensuring any issues with supplier parts are quickly identified. This logistical strategy requires suppliers to be located within a day's drive of the assembly plants, which led to the construction of parts factories in small towns near these locations. The competition among these parts suppliers often results in a push for lower costs, which can affect wages and benefits for workers, sometimes undermining the advantages gained through union negotiations.
The introduction of just-in-time delivery systems has also had significant impacts on how businesses manage their inventory, labor, and overall production costs.