Open AccessThe Impact Of Just In Time On Firm Performance
Author(s) -
Hwei Cheng Wang,
Ninghsin Chen,
Hsain-Jane Chang
Publication year - 2011
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v2i7.2900
Subject(s) - gross margin , profit margin , business , inventory turnover , supply chain , gross profit , profit (economics) , productivity , inventory management , supply chain management , perpetual inventory , finished good , operations management , industrial organization , quality (philosophy) , marketing , economics , inventory theory , microeconomics , production (economics) , profitability index , finance , philosophy , epistemology , macroeconomics
This paper explores whether different supply chain management choices such as just-in-time and non-just-in-time, which has different inventory cost has an effect on firm performance and whether or not the firm adopts the innovation approach such as JIT could increase productivity, reduce inventory and improve quality. The results indicated statistically significant differences in inventory, days to sell inventory, inventory turnover, ROA, sales, cost of goods sold, gross profit margin between JIT and non-JIT. It concluded that the adoption and implementation of innovation approach of supply chain management such as JIT did have a significant difference and improvement on firm performance.