I need full information about Just in time in details and its relation with customer service. Also a real case study is required about Just in time and its solution.
2007-01-28 01:39:42 · 3 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment
"Just-In-Time" is the theory that your suppliers provide your supplies only hours or even minutes before they are needed.
The benefits of this theory of business are numerous.
1. You do not have your working capital (funds) tied up in supplies nor are you paying for warehouses and storage keeping the supplies at the ready.
2. At the end of the year, you do not own the property yet, so you are not required to pay taxes on the supplies; your supplier has the tzx debt.
3. You are more flexible; if you find a cheaper supplier, or someone that has a better product at the same price you do not have to use up the supplies you have on hand. You can move on to the new supplier as soon as the current contract with the supplier expires.
Of course, every business theory has its downsides.
1. If you do not have a stockpile of supplies, you are stuck with any production or delivery probelms that your supplier suffers. You are more affected by strikes or production slowdowns of other companies or unions.
2. If you do not have a stockpile, you have to pay the going rate for the supplies or delivery charges. Fuel prices rise, delivery charges go up as well.
This has been used for several years in the auto industry. So far it seems to work OK though it has driven some suppliers our of business.
As for your solution in class, sorry bud, you're going to have to produce the paper just like everyone else.
2007-01-28 01:58:30 · answer #1 · answered by jpbofohio 6 · 1⤊ 0⤋
Its an inventory system where is not purchased until its needed. It was started by Honda. They would receive the orders for new cars and then they just enough parts and materials to build them. All of their suppliers were located near them to cut down delivery time. This process cuts down the amount of of money the in materials while other systems have millions of dollars worth of parts and materials laying around waiting to be used. With just in time that money can used elsewhere.
2007-01-28 09:57:14 · answer #2 · answered by chios78 4 · 0⤊ 0⤋
Just in time, this means your manufacturing supplies or materials arrive at your plant just in time, the benefit is that you don't carry a large inventory to pay taxes on..
2007-01-28 09:48:14 · answer #3 · answered by dr.pepper106 7 · 0⤊ 0⤋