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</p> Signup and view all the answers

    How can warehouse planning and utilisation benefit customer service?

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

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

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

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

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

    Which of the following is NOT commonly exchanged via EDI?

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

    Why is accuracy important in logistics systems?

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

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

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

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

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

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

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

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

    <p>Maintain stock balances</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</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</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.</p> Signup and view all the answers

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

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

    Why is the external role of IT becoming more important?

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

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

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

    Which of the following is a benefit of EDI?

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

    Which documents can be sent using EDI?

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

    Why might suppliers struggle with JIT methods?

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

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

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

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

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

    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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    Description

    Learn about the Just-in-Time production planning approach, which aims to reduce inventory by coordinating the arrival of materials with production schedules, improving customer service and reducing waste.

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