Advantages And Disadvantages Of Jit

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2.4 Advantages of MRPI • Business results and manufacturing performance are improved. • More accurate and timely information can be obtained to improve manufacturing control. • Inventory and obsolescence are minimized. • The production process is driven by orders and more responsive to market demand. • Production costs are reduced due to increased efficiencies. 2.5 Disadvantages of MRPI • Materials purchasing costs are not optimized due to smaller and frequent orders. • Transportation costs and unit costs are increased due to smaller and frequent orders. • When materials are delivered late, production will be late. • It is difficult to change computer systems after the installation. • The limitation of plant capacity and distribution capacity …show more content…

 JIT is good for a repetitive production environment but not others.  Not all vendors comply with JIT operations, e.g. high quality material & flexible delivery.  Workers may have problems with JIT’s flexible, broadly stated jobs.  JIT is not good for global trade due to long lead time. 5.7 JIT and distribution Just-in-time delivery needs good collaboration with vendors of distribution services and of products. The distributor needs a continuity of demand and the chance to define routes, loads and schedules well ahead. By working toward longer-terms, higher-volume procurements with vendors, prices can be cut due to larger transport volume over a long period of time. Just-in-time delivery will cut down the operating costs if the business is substantial for the distribution partner. Just in time delivery needs more frequent deliveries from vendors however it does not voluntarily imply higher transportation costs. i) Simple examples to reduce transportation cost are:  when the freight is calculated by weight only.  when a wide range of goods is put into each shipment and it offsets the smaller volume of bulk orders.  when the freight is calculated at a flat contract

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