This results in him not having enough cement on hand to fill his orders and

This results in him not having enough cement on hand

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times he receives so many orders that he needs to refill the silo 5 to 6 times a month. This results in him not having enough cement on hand to fill his orders and then he sometimes only delivers the bricks about 2 weeks after the time originally arranged with his client. Jan sells bricks for R5 each. On average he sells about 4 000 bricks per month. Jan has also received a lot of queries from clients who want to buy concrete blocks. After conducting some research, it appears that there is a demand for around 1000 concrete blocks per month which Jan will be able to sell for R12 each. If however he wants to make the concrete blocks he will have to buy another concrete mould for R10 000. It is generally accepted that the mould would have a useful life of 10 years and the it will be written off on the straight-line basis, irrespective of the number of blocks produced by it. The mould currently used for the bricks is already fully depreciated. Jan bought the current mould for R5 000. He can use the same mixture as for the bricks except that he will have to add 10kg more cement to the mixture to gain the required strength for the concrete blocks. He will be able to produce 200 concrete blocks with one mixture. Required 1) Jan heard from a management accountant friend of his that he should consider implementing a just in time system at his business. Jan has no background in management systems and therefore has no idea what his friend is talking about. Explain to Jan what a just in time system is, give 2 benefits that he will gain from using it and also give 2 requirements in case Jan would like to implement this system. (3) 2)
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  • Summer '17
  • MR. MUSHONGA

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