Just In Time Strategy In The Supply Chain System

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This essay will critically evaluate the use of just in time strategy in the supply chain system by describing the method itself, then it will look for possibilities that it could benefit or harm the operations during crisis and unexpected events and its effect on the operations. This is followed by suggestions on how to survive in crisis events to companies who use lean supply chain system and tries to provide alternative approaches to this concept.
In today’s business world, companies are desperately trying to find a way to gain a competitive advantage and make more profit. One of the ways to do so is by reducing the cost of their productions. Operations have to make sure their production system is fast enough to meet the demand and the requirements …show more content…

Some companies need to have a confirmed order to start making a product due to its attached cost and materials. Some businesses need to have high stocks due to the high demand of a product and by doing this they have always have the product to sell to the customers on time. Finally, some businesses found a smart strategy to set their supply chain on it, which is the ‘Just in Time’ (JIT) supply system, a strategy based on eliminating the waste that is linked to time, labour and storage space, (Vijay and Sadikot, 2016). In this way, they have just enough supplies and inventory to meet the demand and they do not have high volume of finished products in their stock rooms, which drastically help them to be super-efficient in their production, be fast and have more cash in their hands. On the other hand, operations who source globally are highly sensitive with this system. Moreover, operations with low volume of production and high variability will definitely face problems with this …show more content…

2010). As it has been mentioned, this lean production system has been very successful and many other car makers are implementing this as their manufacturing and operational strategy. This is due to its basic objective which is reducing costs by eliminating the waste associated by time, labour and storage space. Many, believe that the success of the company widely relies on the production strategy of the company. As (Bortolotti et al. 2013) point out, “JIT improves most performance dimensions, in particular manufacturing costs, inventory turnover, cycle time, on-time delivery, fast delivery, volume flexibility and mix flexibility”. This shows that Just in time strategy can definitely improve the operational performance of businesses especially in high repetitive manufacturing systems and be used in order to remove the waste from the operation

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