Just In Time business models are founded on the principle on having supplies ready whenever they are needed (Hugos, 2011, p. 43). This model helps reduce the amount of money invested in inventories and also the associated risk of storage. When effectively applied the model helps improve the operations department of an organization such that it can produce customized products.
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The JIT principle has been applied in a furniture store in our area. The store sells different house and office furniture such as desks, tables, sofa sets and beds. I learnt of the application of this model one day when I took a friend to buy a sofa set. At the store, there was only one sample of each product while other designs were available or viewable only as pictures. My friend and I were curious to establish whether the store resells furniture from other suppliers or makes their own products. The owner told us that they actually make their own furniture. Every time a person makes an order, suppliers are alerted to deliver various parts and materials needed to make the product. After this is done the store’s production department then makes the final product according to the customer’s specification.
The JIT principle at the furniture store has been successful as it helps the owner save on costs of buying inventory. Also, the store owner does not have to rent extra space to store inventory and this helps reduce costs (Hoover, Eloranta, Jan & Kati, 2010, p. 104). The JIT model at this business however needs to be improved to integrate information technology. This is because at present, the owner calls all suppliers whenever he needs to make an order for supplies. A computerized order system would however be more efficient and also help on saving on time and telephone bills expenditure.
Hoover, W., Eloranta, E., Jan, H. & Kati, H. (2010). Managing the Demand-Supply Chain. New
Hugos, M. (2011). Essentials of Supply Chain Management. New Jersey: Wiley