Just-in-Time Inventory and Vendor-Managed Inventory
Just-in-time and vendor-managed inventory gained popularity throughout the United States in the 1990's, yet many scholars and practitioners question if the U. S. can be as effective at using just-in-time concepts as Japan in the 1980's. An excellent source of just-in-time articles can be found at NASA's website, APICS, Focused Management, and EIM. These provide a source of useful information, but also provide some links to criticisms of how just-in-time is implemented. The critical articles are a good point at which to begin discussion of the utility of just-in-time inventory management.
- Read Tony Polito's article entitled, "Just-In-Time Under Fire." Describe problems associated with just-in-time in the following categories:
- External Obstacles.
- Global and Logistical Issues.
- Behavioral Constraints.
- Intractable Accounting Systems.
- Small Supplier Difficulties.
- Theoretical Difficulties.
- What does the author conclude is the major problem with how just-in-time has been focused?
- Problems associated with vendor managed inventory are described by Jon Schreibfeder. Vendor-managed inventory is similar in concept to just-in-time inventory management.
- Define vendor-managed inventory:
- Describe the problems encountered by Smokey Supply in it contract for vendor-managed inventory with Ajax Chemical in the following categories:
- Return of existing stock.
- Cost of maintaining inventory in the customer's parts' room.
- Service dissatisfaction.
- What concerns should be taken into account by a vendor making an vendor-inventory management agreement?
- Patricia Nemetz-Mills