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.

  1. Read Tony Polito's article entitled, "Just-In-Time Under Fire." Describe problems associated with just-in-time in the following categories:
    1. External Obstacles.
    2. Global and Logistical Issues.
    3. Behavioral Constraints.
    4. Intractable Accounting Systems.
    5. Small Supplier Difficulties.
    6. Theoretical Difficulties.
  2. What does the author conclude is the major problem with how just-in-time has been focused?
  3. Problems associated with vendor managed inventory are described by Jon Schreibfeder. Vendor-managed inventory is similar in concept to just-in-time inventory management.

    1. Define vendor-managed inventory:
    2. Describe the problems encountered by Smokey Supply in it contract for vendor-managed inventory with Ajax Chemical in the following categories:
      1. Return of existing stock.
      2. Cost of maintaining inventory in the customer's parts' room.

      3. Service dissatisfaction.
      4. What concerns should be taken into account by a vendor making an vendor-inventory management agreement?


- Patricia Nemetz-Mills