Mainville Corporation Recently Abandoned Its Traditional Production and Inventory System

Mainville Corporation recently abandoned its traditional production and inventory system in favor of a just-in-time system. The company typically dealt with 50 suppliers and placed 450 orders throughout the year. All other things being equal, which of the following choices denotes a likely scenario under the just-in-time system? $\begin{array} { | r | r | r | } \hline & \begin{array} { c } \text { Number of } \\\text { Suppliers }\end{array} & \begin{array} { c } \text { Number of } \\\text { Orders }\end{array} \\\hline \mathbf { 1 } & 50 & 300 \\\mathbf { 2 } & 50 & 800 \\\mathbf { 3 } & 100 & 510 \\\mathbf { 4 } & 120 & 300 \\\mathbf { 5 } & 120 & 800 \\\hline\end{array}$

A) 1.
B) 2
C) 3.
D) 4.
E) 5.

Correct Answer:

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