Supply chain analyst: In response to recent component shortages, our manufacturing firm is considering shifting from a 'just-in-time' inventory system to stockpiling critical parts. Management believes this shift will prevent the production halts currently caused by sudden supplier delays. However, adopting this new system will not actually increase our overall production reliability. The massive warehouse space required to stockpile these parts will displace our in-house quality-assurance facilities, forcing us to outsource quality control to third-party labs, which are known for their unpredictable turnaround times.
Which one of the following is an assumption required by the supply chain analyst's argument?
- AThe delays caused by the third-party quality-assurance labs will be more severe and more frequent than the production halts currently caused by supplier delays.
- BThe manufacturing firm cannot acquire additional warehouse space off-site to stockpile critical parts without altering its current facilities.
- The unpredictable turnaround times at the third-party quality control labs will be disruptive enough to prevent a net increase in the firm's production reliability.Answer
- DThe third-party quality-assurance labs will struggle to maintain the same level of testing accuracy that the firm achieved with its in-house facilities.
- EAny third-party lab the firm uses will experience unpredictable turnaround times on every single batch of parts they test.
Answer
The assumption stating that the unpredictable turnaround times at the third-party labs will be disruptive enough to prevent a net increase in production reliability.
The correct option provides the logical bridge essential for the argument to function. By applying the negation technique, we transform the statement into its opposite: 'The unpredictable turnaround times at the third-party quality control labs will NOT be disruptive enough to prevent a net increase in the firm's production reliability.' If this is true, then overall production reliability WILL experience a net increase. This logically destroys the analyst's conclusion that adopting the new system 'will not actually increase our overall production reliability.' Therefore, the assumption is strictly necessary.
Step-by-Step Solution
Key Concept
Applying the Negation Technique