Question:

A manufacturing company is considering implementing a new production system to improve its operations. The company currently uses a batch production system but is exploring the option of transitioning to a just-in-time (JIT) system. Various factors need to be considered before making this decision. Which of the following statements best reflects a consideration relevant to this decision-making process?

A) JIT systems require higher inventory levels compared to batch production systems.

B) Implementing a JIT system can lead to reduced lead times and increased flexibility in production scheduling.

C) Batch production systems are more cost-effective than JIT systems due to lower setup costs.

D) JIT systems are less dependent on supplier relationships and external factors compared to batch production systems.

E) Transitioning to a JIT system would have no impact on quality control measures within the manufacturing process.