1. What is JIT manufacturing? List five ways in which JIT manufacturing differs from traditional manufacturing.
2. What are manufacturing cells? Explain how they differ from production departments.
3. Explain why some indirect manufacturing costs in traditional manufacturing become direct costs in JIT manufacturing. Give some examples of costs that change in this way.
4. Explain how long-term contractual relationships with suppliers can reduce the acquisition cost of materials.
5. What is EDI, and what relationship does it have to continuous replenishment?
6. What approach does JIT take to minimize total inventory costs?