The phenomenal success of Japanese manufacturing firms in the global marketplace has been attributed in part to their innovative use of JIT as a component of their competitive strategy. JIT practices have rapidly spread throughout the world. In parallel, there is a growing inter-disciplinary literature that attempts to understand the theoretical underpinnings of JIT and refine its implementation. The fundamental idea behind JIT is to make production batch(lot) sizes smaller and smaller and move products through the production process in these small batches. Batch-size reductions trigger a chain reaction of benefits including reduced inventories in the system, reduced material waste, improved quality, and higher employee responsibility.
There are many advantages of that a manufacture can receive from JIT: possible increase in profits, quality products, quicker setup, eliminates costs of storage facilities, More flexible employees, Quality relationships with suppliers, elimination of waste, No down time.
The classical economic production quantity (EPQ) model assumes that items produced are of perfect quality and that the unit cost of production is fixed. In practice, the problem that inventory managements face directly is the uncertainty of demand, which has been examined mostly in the EOQ inventory model. Therefore, we will consider about the EPQ inventory model with the uncertainty of demand, and the model will be separate into two parts- a model without shortages or backorders, and a model with shortages or backorders. EPQ model used when the stock (inventory) of an item is periodically being re-supplied concurrently with it being drawn from stock. The production rate must exceed the usage rate for this model to work.
There are many advantages of that a manufacture can receive from JIT: possible increase in profits, quality products, quicker setup, eliminates costs of storage facilities, More flexible employees, Quality relationships with suppliers, elimination of waste, No down time.
The classical economic production quantity (EPQ) model assumes that items produced are of perfect quality and that the unit cost of production is fixed. In practice, the problem that inventory managements face directly is the uncertainty of demand, which has been examined mostly in the EOQ inventory model. Therefore, we will consider about the EPQ inventory model with the uncertainty of demand, and the model will be separate into two parts- a model without shortages or backorders, and a model with shortages or backorders. EPQ model used when the stock (inventory) of an item is periodically being re-supplied concurrently with it being drawn from stock. The production rate must exceed the usage rate for this model to work.
Yao Zhou
OM
