Which of the following statements about manufacturing in a traditional environment is true?
A) Factories are organized so that machines that are dissimilar are grouped together.
B) It is not desirable to accumulate raw materials inventory to serve as buffers in case of unexpected demand for products.
C) The process begins with a customer order and products are "pulled" through the manufacturing process.
D) Partially completed inventory is accumulated in a work in process inventory account.

Question

Quizplus · Accepted Answer

In a traditional manufacturing environment, partially completed inventory is accumulated in a work in process inventory account. This is because the process is typically organized around a push system where products are produced in large batches based on forecasted demand rather than individual customer orders, leading to the need for work in process inventory. Choices A, B, and C describe practices commonly used in lean manufacturing environments, which have evolved as an alternative to traditional manufacturing.

Which of the Following Statements About Manufacturing in a Traditional