May result in decreased throughput rate 13 features

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Unformatted text preview: decreased throughput rate 13 Features of JIT Systems Kanban Information Flow System Kanban Advantages: 1. Efficient tracking of lots 2. Inexpensive implementation of JIT 3. Achieves desired level of WIP Disadvantages 1. Slow to react to changes in demand 2. Ignores predicted demand patterns Kanban Information System Versus Versus Centralized Information System System 14 Features of JIT Systems JIT Purchasing System JIT Advantages: 1. Inventory reduction 2. Improved coordination 3. Better relationships with vendors Disadvantages: 1. Decreased opportunity for multiple sourcing 2. Suppliers must react quickly 3. Potential for congestion 4. Suppliers must be reliable. Comparison of MRP and JIT Major study comparing MRP and JIT in practice reveals: Major JIT works best in “favorable” manufacturing environments: little demand variability, reliable vendors, and small set up times vendors, MRP (and ROP based on Chapter 5 methods) worked well in favorable environments (comparable to JIT) and better in unfavorable environments. JIT) 15 Reading Reading Whole chapter. Selected Problems Selected 2, 4, 6, 11, 14, 17, 30, 35 2, 16...
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