Supply Chain Innovations: Just-in-Time Manufacturing (JIT), Material Requirements Planning (MRP)

Supply Chain Innovations
Name:
Course:
Tutor:
Institution:
Date:
Just-in-time manufacturing (JIT) is a production methodology aimed at reducing the response times as well as flow times within production from suppliers to customers. According to Lussier (2012), it is a method that raw materials get delivered shortly before they are needed. An organization using JIT seeks to cut operation costs by reducing the amount of material and goods that the organization holds in the form of stock. It involves production and delivery of goods 'just-in-time' for sale. Production of partly finished goods 'just in time' for their conversion into finished goods, parts 'just in time' their conversion into partly finished goods and raw materials 'just in time' for their transformation into parts.
This principle has the aim of eliminating unnecessary inventories or low maintaining levels of inventory. JIT eliminates the need to keep extra inventories by attacking the causes that would make these disruptions for late example deliveries, scrap, and rework to occur in the first p...