Mathematics · Operations Management

A large manufacturing conglomerate is transitioning its traditional Push System supply chain to a JIT Pull System. The transformation requires a cultural and structural change. Consider the following statements on the necessary conditions for this change: Statement 1: The company must implement a total preventative maintenance (TPM) system to ensure near-zero machine breakdowns, as inventory buffers are minimized. Statement 2: Long-term contracts and collaborative relationships with a fewer number of high-quality suppliers must replace the multi-sourcing, price-driven procurement model. Statement 3: The company must embrace cellular manufacturing layouts and multi-skilled operators to enable flexible, quick changeovers and avoid idle time (waiting Muda). Statement 4: The system must retain a significant central warehouse to store finished goods, ensuring a quick response to unexpected surges in customer demand. Which of the above statements is/are correct?