Module 3 Case Assignment:
After the tragic attacks of September 11, 2001 many companies who relied upon just-in-time inventory practices, found themselves in crisis due to their supply chain inventory being disrupted. One particular company directly affected by this calamity was the Chrysler Corporation. As the disruption of critical parts and supplies threatened to cripple its assembly line their plant’s and production capabilities where threaten creating a whole new level of anxiety. But when the system is working as designed, it will reduce over all cost associated with warehousing, quality problems as a result of merchandise being stagnant, and I will talk about the Global Operations Management issues brought to light by the Chrysler Corporation.
The philosophy of just-in-time inventory systems relies heavily upon getting the right quantity of goods to the right place, at the right time. It is designed to eliminate waste in promote a broader operations view with it simplistic design and level of flexibility. By incorporation the “JIT approach, warehousing cost can be greatly diminished eliminating the need of purchasing and maintaining a storage facilities large enough to accommodate the volumes of material needed to maintain the operation. Savings are achieved in a multifaceted ways. First profit is no longer tied up in inventory, allowing the revenue to be spent on other areas of need. There’s also the cost of staffing the warehouse facility which is reduced, along with insurance cost of covering the contents of the facility with other potential savings in operational costs associated with maintaining the property.
When it comes to the issues of quality and problems associated with warehousing materials and goods, utilizing JIT, quality problems can be eliminated in several ways. The detection of inferior products is more rapidly identified with this... [continues]
Cite This Essay
(2010, 09). Opm 300 Mod 3 Case Assigment. StudyMode.com. Retrieved 09, 2010, from http://www.studymode.com/essays/Opm-300-Mod-3-Case-Assigment-404064.html
"Opm 300 Mod 3 Case Assigment" StudyMode.com. 09 2010. 09 2010 <http://www.studymode.com/essays/Opm-300-Mod-3-Case-Assigment-404064.html>.
"Opm 300 Mod 3 Case Assigment." StudyMode.com. 09, 2010. Accessed 09, 2010. http://www.studymode.com/essays/Opm-300-Mod-3-Case-Assigment-404064.html.