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Ripple Effect that May Cause Issues Related to Inventory

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As we know read, there is a ripple effect that may cause issues related to inventory, invalidating the JIT benefits.

How might lead times be affected by JIT? How might JIT affect CP (Ciritical Path) analysis?

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Just-in-time and lead time are concepts in relation to inventory control management. The main objective is to maintain a level of inventory that would cope with production as well as demand requirements, in the most efficient or economical manner. Critical path analysis has something to do with the production period such that it is the longest and most critical path that needs to be monitored closely because any delay in each step along the path would delay the completion of the whole project or the batch of outputs that need to be produced.
Just-in-time and lead time
Just-in-time is an inventory control that reduces inventories to a minimum by arranging for them to be delivered to the production ...

Solution Summary

The solution discusses the ripple effect that may cause issues related to inventory, invalidating the JIT benefits.

Similar Posting

Operations management - Supply chain management & the bullwhip effect

See the attached file also.

Question 1:

IF: THEN (all else equal, it is likely that):

a) We aim to increase "inventory velocity" We must produce and push work-in-process faster to next operation/ wait and produce only what is pulled by next operation. EXPLAIN WHY

b) We install an expensive machine that requires The intensity of the "bull whip" in the supply chain
very large production batches but it is fast will increase / decease / not be affected. EXPLAIN WHY

c) We consolidate inventories from two (nearby) "Service level" will increase / decrease/ not be affected warehouses into one warehouse (keeping the same EXPLAIN WHY
amount of inventory)

Question 2:

A plant makes four different models of DeskJet printers. Up to now, it has been producing each model only once every week (for example, Model A on Mondays, Model B on Tuesdays and part of Wednesdays, Model C on Wednesdays and Thursdays, and Model D on Fridays). There is a proposal to move from weekly to daily schedule and produce some of each model every day. Total weekly production output would be the same. Changeover times and costs (from one model to another) are insignificant.

Would this change reduce or increase:
a) The level of inventory of printers in the supply chain after the plant? Why?
b) The level of "work in process" inventory in the plant (i.e., number of printers being assembled)? Why?
c) The intensity of the "bull whip" in the entire supply chain? Why?

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