Just in Time

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Students will respond to the following:
Discuss the pros and cons of a JIT relationship from a supplier’s point of view and a buyer’s point of view.

The con of the JIT relationship is that problems would occur if the company has sudden breaks to service and the supply. This may lead to labor strikes, and then eventually a failed business.

A pro of the JIT relationship would be saving cost by not having unnecessary inventories. Also another attribute is flexibility, allowing the company to answer.

Analyze the short-term and long-term consequences that could come from implementing this JIT relationship. The short-term consequence of implementing JIT would be the cost that ties into the culture evolving, training staff on problem solving. The long-term consequence of JIT is improving the quality of the product along with the delivery of it. Once customers realize the proficiency of the company with its product that leads to a chance of a larger profit.

Discuss what factors Dixon and D&S should consider before making a decision on this relationship. In regards to factors that Dixon and D&S should consider before making a decision is: 1.Improved Quality- measuring the quality of service, timeliness, service consistency and courtesy. 2.Utilizing Multifunction Workers – Assist with improving quality and customer service. 3.Reduced Turn Around time – The competition is steady among companies that provide services, so a company that uses JIT concepts reduces the turnaround time and increase their speed.
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