Chapter 12 The just-in-time system

Publisher Summary This chapter presents an overview of Just-in-Time (JIT). There are two keys to JIT supplier logistics: taking control of inbound deliveries and establishing quick feed-back loops. Various models have been proposed to investigate the improvement and learning processes the JIT system seeks to foster. To maximize the probability of success of a JIT program, it is also necessary to put proper incentive systems in place that encourage employees and management to implement the desired changes, and to redefine areas of responsibility throughout the organization. The purchasing firm also attempts to level its production schedule to make JIT deliveries possible without significant buffer inventories. The extension of JIT across firms thus creates mutual dependencies between supplier and customer, and hence incentives to cooperate to resolve problems and increase efficiency. Geographical distance between supplier and customers limits the potential for achieving JIT deliveries. A customized JIT program will have to be designed to fit the particular circumstances of an organization, and a cost/benefit analysis may indicate that JIT is not appropriate.

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