Trayton Enterprises, which manufactures lawn mowers, recently installed a just-in-time purchasing system and an activity-based management program.Required: A. Determine whether the following items would be apt to increase or decrease as a result of the just-in-time system: 1. Inventory storage costs.2. Number of suppliers used.3. Number of raw material shipments handled.4. Dollars available for alternative investment opportunities.5. Quality of raw materials purchased.B. Identify the following items as value-added activities, non-value-added activities, or both.1. Attaching the engine to the mower's body.2. Installing a new air-conditioning system in the executive offices.3. Replacing a defective wheel with a new wheel.4. Designing and printing an owner's instruction manual for a new
model.5. Moving completed mowers to the finished-goods warehouse.6. Attaching the handle to the mower's body. The process took longer than normal because of a worker slowdown caused by disgruntled employees.
What will be an ideal response?
| A. | 1. | Decrease | B. | 1. | Value-added |
| ? | 2. | Decrease | ? | 2. | Non-value-added |
| ? | 3. | Increase | ? | 3. | Non-value-added |
| ? | 4. | Increase | ? | 4. | Value-added |
| ? | 5. | Increase | ? | 5. | Non-value-added |
| ? | ? | ? | ? | 6. | Both |
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