Final answer:
When a company switches to a just-in-time production system, the quality of raw materials often improves and the number of vendors supplying the firm decreases.
Step-by-step explanation:
When a company switches from a traditional system to a just-in-time production and inventory system, the quality of raw materials purchased often improves. This is because just-in-time delivery allows for immediate identification and correction of any defective parts, preventing them from being shipped to the main assembly plant.
Additionally, the number of vendors that supply the firm typically decreases.
With just-in-time delivery, suppliers must be within one day's drive of the main assembly point, which usually leads to the construction of parts factories in the surrounding area.