Question

JIT has caused most major chains such as Wal-mart, Target, Vons, Stater Bros. to use distribution...

JIT has caused most major chains such as Wal-mart, Target, Vons, Stater Bros. to use distribution center as oppose to warehouses Do you agree or disagree? Why

Homework Answers

Answer #1

JIT inventory stayed has enabled businesses to optimize their inventory and allowed the major chains such as Walmart, target etc. to make use of distribution center in the place of the warehouse which they had to maintain and were required for the storage of a large quantity of inventory. JIT has eliminated the need for companies to keep a large amount of inventory, minimizing their external costs while allowing them the same benefits as they would have. I do agree with this statement. The conversion from warehouses to distribution center was not only necessary but logical as well. When the need for storage is eliminated, the company can essentially focus on improving the already present structure and create better process, optimizations and enhancements to them in order to serve the customers better and essentially maximise on their profit.

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