3 ms·

How?

• hef19898 5y ago
  Because people equal JIT with close to zero buffer inventory. JIT is basically a concept of defining the correct and minimal buffer. If that's close zero, cool. If it's more than zero, cool as well. It also puts a lot of emphasis on lot sizes and lead-times. No one in the right mind would implement JIT for stuff involving sea freight without buffer stock close to production.
  • wheelinsupial 5y ago
    There are pre-conditions for products to be set up as JIT. As you mention, short lead times, but also things like high quality, high availability, and others as well. Toyota and a lot of the concepts that come out of Toyota are ideals to strive for. It doesn’t mean everything is like that, which is hard to understand from just reading the lean literature.
  • Gibbon1 5y ago
    Also can depend on how high value the part is. I remember one time our purchasing agent bought 10,000 units of something. Took 5 years to use it all up. Normally they were $0.25 but some company canceled a huge order leaving the distributor with about 50,000 units overstock. We got them for $0.05 each.