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Transcription of this question: 3.PAPA makes pre-assembled parts of vehicles, called modules, for major car companies. For example,PA assembles cooling systems, which are then shipped to the car manufacturer for installation.Modules are produced in batches at PA and are transported frequently to arrive just-in-time forinstallation by the car manufacturers.Major car manufacturers increasingly prefer to buy modules from Other firms rather than makethem themselves. Doing so allows the major car manufacturers to lower costs and be more flexible.PA has formed joint ventures with Other firms to supply major car manufacturers. One suchjoint venture, called Piston Modules LLC, is between PA and Continental Teves to assemblebrake modules for several car manufacturers. The joint venture will lease land at PA SMichigan Avenue factory, located in Detroit, creating 100 new manufacturing jobs.The joint venture will require specialized equipment costing SIO million. With a bank loan to berepaid over 5 years, PA will acquire the equipment, which the joint venture will lease. The lease termwill be 5 years.Piston Modules LLC will be 51 % owned by PA and 49 % owned by Continental Teves_(a)(b)(c)(d)With reference to stock control, define the term just-in-time.(i) Distinguish between batch production and flow production.(ii) Explain two economies Of scale Piston Modules LLC could benefit from.Examine two human resource issues Piston Modules LLC may face as a resultOf creating 100 new manufacturing jobs.Discuss the appropriateness Of the bank loan to PA as a source Of finance forthe SIO million in equipment.[2 marks][2 marks][4 marks][5 marks][7 marks]

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