Inventory Control of Purchased Materials When It's Not Quite JIT
The qualification of "not quite JIT" is used to clarify the fact that a JIT environment, in its purest theoretical form, will have materials pulled through the entire pipeline without any need for inventory; the pull originating from customers, through one's own production, to supplie...
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Published in | Production and inventory management journal Vol. 33; no. 3; p. 14 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Alexandria
American Production & Inventory Control Society, Inc
01.07.1992
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Subjects | |
Online Access | Get full text |
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Summary: | The qualification of "not quite JIT" is used to clarify the fact that a JIT environment, in its purest theoretical form, will have materials pulled through the entire pipeline without any need for inventory; the pull originating from customers, through one's own production, to suppliers (and their suppliers) in very small lot sizes, and use of the pulled materials is almost immediate. Three scenarios are presented to illustrate how a not quite JIT environment can exist. In the scenarios, an inventory model based on the philosophy of replenishment should be used to manage the purchased materials. Two basic inventory models are: 1. order point, order quantity (R,Q), and 2. order up to target (P,T). For companies that are just starting out on the JIT journey, and even for those that are in the midst of converting to JIT, this basic inventory model is an excellent analytical tool, not only in determining the total number of kanban cards required, but also in providing motivation for migrating from a not quite JIT to a truly JIT environment in one's internal operations. |
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ISSN: | 0897-8336 |