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Does the customer's order start the JIT process?

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Since the early 1980's we in the United States have been hearing about, and most have adopted, Just-In-Time or Lean Manufacturing as practiced by the Japanese. Is it really "just-in-time" if you the consumer can buy any color Toyota right from the dealer's car lot? Or buy any Apple iPod in any model or color right off the shelf at Best Buy? Doesn't the customer's order start the JIT process? (short response please)

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JIT inventory policy is intended to minimize the cost of maintaining an inventory or the so-called carrying cost. Carrying cost is what the company incurs as it holds in its stock a certain level of inventory. It may consist of warehouse, insurance, and other maintenance costs. The company may also incur deterioration or obsolescence costs as it holds certain level of inventory. While goods are in stock, ...

Solution Summary

This solution provides a detailed discussion of the just-in-time (JIT) process.

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Inventory Management: JIT, MRP, ERP, and Lean Operations

You have just received a phone call from a senior partner at one of the "Big Four" management consultancies. She wants to meet with you to discuss the most recent developments in Inventory Management, including JIT, MRP, ERP, and Lean operations. You suspect that her true motive is to sell a SOA (Supply Chain Opportunity Assessment) to your division and to follow that up with a new software package implementation. Nevertheless, you agree to meet with her anyway.

In preparation for that meeting, you ask your staff to participate in a brainstorming meeting.
Your assignment is to create a posting with what you believe to be the most important discussion points for the meeting.
Your initial posting should cover at least the following topics:
1. How could JIT principals be incorporated in your supply chain and manufacturing operations?
2. How can you assess a MRP/ERP package's usefulness in supporting your efforts to monitor, control, and improve your inventory management efforts? What should you realistically expect of a MRP/ERP after it is first implemented?
3. What strategic or tactical opportunities can your organization pursue? If you have more than one item, be sure to prioritize your list.

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