Question

Linhart-Scafaldi Enterprises is a manufacturer of high performance metal bearings for industrial applications. One of their collaborative customers, Campbell Speed Shop, has asked Linhard-Scafaldi to provide a “JIT” Logistics Solution by next month.

The CEO of Linhart-Scafaldi has asked you, the firm’s Marketing Manager, to:

a) explain what this “JIT” means and

b) identify 2 changes that will need to / should be made at your company to support this request?

Answer 1

A) JIT means just-in-time and it is a method of inventory management that focuses on alignment of inventory demand with quick inventory supply and it advocates that not much inventory should be kept idle as it is the wastage of an opportunity of creation of return as the capital is struck in more of the inventory.

companies often adopt this strategy to increase the efficiency in inventory management and decrease the wastage.

B) two changes that would been to support the system of just in time would be-

1. Machine breakdown should be completely eliminated in the system of just in time so any kind of machine breakdown must be avoided.

2. Moving from long-term manufacturing cycle to short-term manufacturing cycle in just in time method.