$(20$ marks$)$

Q$2$

a$)$ SWV is a member of the SWAL Group of companies. SW manufactures cleaning liquid using chemicals that it buys from a number of suppliers. In the past $SW$ has used a periodic review inventory control system with maximum and reorder levels to control the purchase of the chemicals and the economic order quantity model to minimize its costs. The Managing Director of SW is considering a change by introducing a just$-$in$-$lime $($JIT$)$ system and has asked you to provide him with some more information about this.

Required

Explain how a JIT system differs from the system presently being used at SW$,$ and the extent to which its introduction would require a review of SIV's quality control procedures.

$(10$ marks$)$