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Reduced order quantities. One of the most crucial elements of the just-in-time system is small lot sizes. Traditionally, long and infrequent production runs have been
Reduced order quantities. One of the most crucial elements of the just-in-time system is small lot sizes. Traditionally, long and infrequent production runs have been considered beneficial for the overall productivity of a manufacturing organization. However, long production runs usually lead to high levels of raw material and finished-goods inventories. Large setup times have been the primary motivating factor for longer production runs. The JIT concept reduces setup times and the associated costs by introducing clever changeover techniques and simpler product designs. This permits more frequent production runs and smaller lot sizes. In turn, the JIT purchasing function becomes responsible Benton, W. C.. Purchasing and Supply Chain Management (p. 131). SAGE Publications. Kindle Edition
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