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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 630 |
Essay's paper body
Toyota defined JIT as producing the required quantity of units in a given time resulting to the reduction of excess inventory and workforce, thus improve productivity. However, some risks are associated with JIT. It is not impervious to labor issues, transportation delays, or unscheduled supplier plant shutdown...
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Since the inventory are kept low as possible, safety stocks are not designed to cover potential issues and delays at the supplier side.
Compare /contrast and Summary:
Risks are always associated with these alternative solutions, but this does now imply that the solutions are not effective. Definitely, managing the forecast is one way to cut inventory or inventories will be transferred to suppliers through vendor consignment program...
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