Principles of Just-in-Time (JIT) Production Planning

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Questions and Answers

What is one of the benefits of enhancing the speed of order entry and processing?

  • Improving financial accounting
  • Reducing warehouse space
  • Reducing lead-time (correct)
  • Increasing order variety

How does better management of inventory impact delivery?

  • Reduces the number of deliveries
  • Increases delivery accuracy
  • Increases delivery time
  • Reduces delivery costs (correct)

Which of the following is NOT a role of the stock management system?

  • Recording deterioration
  • Recording and identifying damage
  • Identifying loss
  • Improving customer service (correct)

Which aspect of stock management can be made more accurate through the system?

<p>Administration (D)</p> Signup and view all the answers

How can warehouse planning and utilisation benefit customer service?

<p>By being more cost-effective (D)</p> Signup and view all the answers

Which of the following is a benefit of ICT on supply chain communications?

<p>Faster communications (D)</p> Signup and view all the answers

How does ICT impact inventory management in the supply chain?

<p>It allows for just-in-time ordering systems (D)</p> Signup and view all the answers

What is one way ICT contributes to streamlined administration in supply chains?

<p>It simplifies and automates administrative tasks (B)</p> Signup and view all the answers

Which of the following illustrates ICT's role in information sharing within supply chains?

<p>Enhanced collaboration platforms (A)</p> Signup and view all the answers

What benefit does ICT provide to the relationship with suppliers and partners in the supply chain?

<p>Closer links with suppliers and partners (D)</p> Signup and view all the answers

What is the primary goal of Just-in-Time (JIT) planning?

<p>To deliver materials just before they are needed (B)</p> Signup and view all the answers

What is a disadvantage of materials arriving too early in a JIT system?

<p>It wastes time and resources by sitting and waiting (A)</p> Signup and view all the answers

How does JIT differ from traditional material planning approaches?

<p>JIT coordinates the arrival of materials just before they are needed (C)</p> Signup and view all the answers

Why might customers be dissatisfied with a service that arrives after the expected time in a JIT system?

<p>It delivers poor customer service (A)</p> Signup and view all the answers

What role does MRP (Material Requirements Planning) play compared to JIT?

<p>MRP coordinates material arrival with demand to reduce stock (A)</p> Signup and view all the answers

What effect does JIT have on the inventory levels of a business?

<p>Reduces inventory levels significantly (A)</p> Signup and view all the answers

Which of the following is NOT commonly exchanged via EDI?

<p>Marketing materials (A)</p> Signup and view all the answers

Which of the following best describes a major advantage of EDI over email?

<p>EDI reduces human involvement in document handling (D)</p> Signup and view all the answers

What is one disadvantage of processing documents via email compared to EDI?

<p>Email documents require manual handling by people (B)</p> Signup and view all the answers

Which EDI document type would most likely be used to alert a customer about an upcoming delivery?

<p>Advance ship notice (B)</p> Signup and view all the answers

What type of system on the receiver's computer might directly process EDI documents?

<p>Order Management System (D)</p> Signup and view all the answers

What is one of the main functions of logistics within a company?

<p>Coordinating the flow of materials through the system (B)</p> Signup and view all the answers

Which area is NOT mentioned as having seen major advancements due to new technology in logistics management?

<p>Marketing management (C)</p> Signup and view all the answers

Why is accuracy important in logistics systems?

<p>To deliver effective customer service (A)</p> Signup and view all the answers

Which is a benefit of advancements in information systems within logistics management?

<p>Improved warehousing management (A)</p> Signup and view all the answers

What should a logistics system provide to deliver effective customer service?

<p>Correct information and accuracy (B)</p> Signup and view all the answers

Which task involves ensuring accurate logging of items arriving at the facility?

<p>Capture delivery information accurately (B)</p> Signup and view all the answers

What primarily helps in distinguishing distinct picking tasks based on orders?

<p>Sort order requirements into appropriate picking tasks (A)</p> Signup and view all the answers

What task ensures that the stock levels are consistently updated and accurate?

<p>Maintain stock balances (D)</p> Signup and view all the answers

Which task focuses on the efficiency and performance of the workforce within the system?

<p>Monitor productivity and utilization (A)</p> Signup and view all the answers

What is the main purpose of recording stock movements?

<p>To log the changes in stock locations within the system (C)</p> Signup and view all the answers

What is the impact of Information and Communications Technology (ICT) on storage and distribution operations?

<p>It has a growing impact. (A)</p> Signup and view all the answers

What is one of the benefits of current and developing communications tools?

<p>Faster, more accurate communication. (A)</p> Signup and view all the answers

Why is the external role of IT becoming more important?

<p>Organizations continue to link systems. (D)</p> Signup and view all the answers

What increased demands are placed on stores and distribution personnel?

<p>Because of their role in supply chains and their interface with the customer. (A)</p> Signup and view all the answers

What characteristics must an IT system have to operate a warehouse effectively?

<p>Fast, flexible, and accurate. (D)</p> Signup and view all the answers

What is Electronic Data Interchange (EDI)?

<p>The movement of business data electronically between or within firms in a structured, computer-processable data format. (A)</p> Signup and view all the answers

Which of the following is a benefit of EDI?

<p>Provides timely and highly accurate information. (D)</p> Signup and view all the answers

Which documents can be sent using EDI?

<p>Invoices, bills of lading, and shipping details (D)</p> Signup and view all the answers

How does EDI enhance the effectiveness of businesses?

<p>By facilitating the computer-to-computer exchange of structured data. (A)</p> Signup and view all the answers

Why is EDI considered efficient?

<p>It eliminates the need for rekeying data from one system to another. (C)</p> Signup and view all the answers

What is a major risk when introducing Just-In-Time (JIT) systems?

<p>Completely new systems and operations (B)</p> Signup and view all the answers

Why might suppliers struggle with JIT methods?

<p>Inability to adapt to JIT methods (D)</p> Signup and view all the answers

What does JIT require from its suppliers to ensure smooth operations?

<p>Perfect quality of materials (D)</p> Signup and view all the answers

What is a consequence of JIT when dealing with highly variable or seasonal demand?

<p>Stable production requirements (D)</p> Signup and view all the answers

Which of the following highlights a drawback of JIT in terms of customer demands?

<p>Reduced flexibility (A)</p> Signup and view all the answers

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Study Notes

Information Systems

  • ICT is having a growing impact on storage and distribution operations, enabling faster and more accurate communication between organizational control and operatives.
  • The external role of IT is becoming more important as organizations link systems.
  • Stores and distribution personnel have greater demands placed on them due to their role in supply chains and their interface with the customer.

Control and Information Systems Tasks

  • Capture delivery information accurately
  • Record stock movements
  • Maintain stock balances
  • Monitor productivity and utilization
  • Track the movement of goods through the system
  • Sort order requirements into appropriate picking tasks

Information Systems Cont.

  • Logistics management requires coordination of the flow of materials through the entire system, providing accurate information and helping deliver customer service.
  • New technology has led to major advances in information systems, including order processing, inventory and warehousing management, and vehicle management.

The Stock Management System Requirements

  • Enhanced speed of order entry and order processing can reduce lead-time
  • Warehouse planning and utilization can be more cost-effective and improve customer service
  • Better management of inventory reduces delivery costs
  • Administration can be more accurate
  • The system maintains stock integrity by recording and identifying damage, identifying loss, and recording deterioration

Benefits of ICT on Supply Chain

  • Faster communications
  • Information sharing
  • Track and trace systems
  • Direct ordering
  • Streamlined administration
  • Greater information gathering potential
  • Closer links with suppliers and partners
  • Inventory management

Electronic Data Interchange (EDI)

  • EDI is the movement of business data electronically between or within firms in a structured, computer-processable data format
  • EDI permits data to be transferred without rekeying from a computer-supported business application in one location to a computer-supported business application in another location
  • EDI is used by supply chain partners to exchange essential information necessary for the effective running of their businesses
  • EDI provides timely, accurate, and efficient information exchange

Electronic Data Interchange (EDI) Cont.

  • The most common documents exchanged via EDI are purchase orders, invoices, and advance ship notices
  • EDI replaces postal mail, fax, and email
  • EDI documents can flow straight through to the appropriate application on the receiver's computer, allowing for immediate processing

Principles of Just-in-Time

  • Just-in-time (JIT) organizes all activities to occur at exactly the time they are needed
  • JIT aims to deliver materials directly to operations and virtually eliminate stock
  • JIT requires perfect quality of materials from suppliers and stable production when demand is highly variable or seasonal

Some Specific Problems of JIT

  • High risks of introducing completely new systems and operations
  • Initial investment and cost of implementation
  • Long time needed to get significant improvements
  • Inability of suppliers to adapt to JIT methods
  • Reduced flexibility to meet specific, or changing, customer demands

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