From the end of Chapter 11, answer Discussion Question 6: The just-in-time (JIT) movement has long argued that firms should:
- Maximize their process flexibility so that ordering costs are minimal.
- Stabilize demand levels.
- Shrink lead times as much as possible.
- Assign much higher holding costs to inventory than has traditionally been the case.
Using the economic order quantity (EOQ) and reorder point (ROP) formulas, explain how such efforts would be consistent with JIT’s push for lower inventory levels
Required Resources
Text
Bozarth, C. C., & Handfield, R. B. (2016). Introduction to operations and supply chain management (4th ed.). Upper Saddle River, NJ: Pearson.
- Chapter 10: Sales and operations planning (Aggregate planning)
- Chapter 11: Managing inventory throughout the supply chain
- Chapter 12: Managing production across the supply chain
Articles
Evans, M. (2014, February 27). Trickle of jobs returning to U.S. shores could soon become a torrent (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/allbusiness/2014/02/27/trickle-of-jobs-returning-to-u-s-shores-could-soon-become-a-torrent/
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Mullich, J. (2013, July 12). The benefits of outsourcing finance and accounting (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/xerox/2013/07/12/the-benefits-of-outsourcing-finance-and-accounting/
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