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Distinguishing Features of Just‐in‐Time Systems in the Make‐to‐Order/Assemble‐to‐Order Environment *
Author(s) -
Handfield Robert
Publication year - 1993
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1993.tb01294.x
Subject(s) - order (exchange) , procurement , salient , build to order , computer science , business , industrial organization , operations research , operations management , production (economics) , microeconomics , economics , marketing , mathematics , artificial intelligence , finance
Few studies of just‐in‐time (JIT) implementation examine their significance in make‐to‐order manufacturing environments. This study examines the relative importance of several operating variables that are characteristic features of JIT systems within such environments in North America. The results suggest that the most salient features of JIT for make‐to‐order and assemble‐to‐order firms are the elimination of waste (in the form of time and defects), reduced setup time, reduced lotsize, and a smaller pool of suppliers. In addition, the results suggest that the use of non‐domestic suppliers can possibly hinder efforts at JIT implementation of materials procurement.