Toyota is credited with refining the practice of JIT. In Japan, it benefits greatly by having most of its Qualitative Evaliaton onilk suppliers in close proximity because suppliers are able to provide parts and materials almost instantaneously.

A Fortune 500 manufacturing company in the center of the United States, which is separated by long distances from most suppliers, instituted JIT practices within local operations but found it necessary to maintain a large, computerized, central warehouse.

Required Form small groups to consider the following:

a. How could this company benefit from JIT even though it must maintain a costly inventory warehouse?

Describe several examples of benefits this company could experience from its application of JIT.

b. Prepare a short presentation that outlines a method for this company to determine whether the benefits from JIT outweigh the costs.