Implementation of JIT purchasing: an integrated approach

Author: Ha D.   Kim S-L.  

Publisher: Taylor & Francis Ltd

ISSN: 1366-5871

Source: Production Planning and Control, Vol.8, Iss.2, 1997-03, pp. : 152-157

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Abstract

This article addresses the necessity of integration between buyer and supplier for effective implementation of the JIT system. An integrated lot-splitting model of facilitating multiple shipments in small lots is developed and compared with the existing approach in a simple JIT environment, single-buyer-single-supplier, under deterministic conditions for a single product. It is shown that the optimal policy adopted by the integrated approach can provide a strong and consistent cost-minimizing effect for both buyer and supplier over the existing approach.