Erschienen in:Information Systems Working Papers Series, Vol. , pp. -, 1987
Umfang:
1 Online-Ressource (18 p)
Sprache:
Englisch
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 1987 erstellt
Beschreibung:
Inventory Management has been widely discussed in theliterature. Recently, the so called quot;Just in TimeAtilde;cent;Acirc;not;Acirc;? methodreceived extensive publicity and was claimed to be one of themajor factors of the Japanese industrial success. This, in turn,promoted a large campaign in the rest of the industrializedworld, to adopt and imitate the quot;Just in TimeAtilde;cent;Acirc;not;Acirc;? (JIT) policy.Corporate and plant managers focused attention and set up goalsas to reach as closely as possible the Japanese inventory levels.Quite often, adoption of JIT disregarded the totally differentnature of the business their companies engaged in, relative toJapanese industry.This paper clarifies the differences between two differentindustrial models: The quot;Assembly LinesAtilde;cent;Acirc;not;Acirc;? model versus the Hi-TechJob Shop quot;Science BasedAtilde;cent;Acirc;not;Acirc;? model and prescribes the inventorystrategy appropriate for each of those models. It is shown thata fully automated Assembly Line type factory requires a Atilde;cent;Acirc;not;Acirc;SJust inTimeAtilde;cent;Acirc;not;Acirc;? (minimal holding costs) inventory strategy, while theScience Based type should follow a more elaborate Atilde;cent;Acirc;not;Acirc;SoptimalPenaltyAtilde;cent;Acirc;not;Acirc;? type of policy