How does a JIT inventory management system work? Why is factory location especially important to firms that use JIT?
What will be an ideal response?
With a JIT system, a firm's suppliers deliver their products directly to the firm's manufacturing center, usually in frequent small shipments, just as they are needed for production. Factory location becomes particularly critical when the just-in-time (JIT) inventory management system is
adopted. The JIT system requires careful coordination between a firm and its internal and external suppliers. Often parts suppliers locate their facilities near the factories of their major customers to meet the JIT requirements of their customers.
You might also like to view...
The purpose of market segmentation is to enable a marketer to tailor marketing mixes to meet the needs of specific segments
Indicate whether the statement is true or false a. True b. False
Environmental destruction diminishes as economies develop, at least in the long run
Indicate whether the statement is true or false