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Assumptions of Just-in-time (JIT)
Aruna Bhatta, UK
Assumptions for effective JIT:
1. It depends on the type of product a company is manufacturing. JIT works best in food (perishable) business, fashion but can also be applied in cars manufacturing like in Toyota.
2. Deep buyer-supplier relationships
3. Buyer should be close to the supplier in terms of location
4. Effective two-way communication between buyer and supplier
5. Good demand forecasting or stable demand.
6. Suppliers should be agile (if there is a high fluctuation in demand, suppliers should be able to adjust and meet the required demand)
7. Effective collaboration and integration between the different partners in the supply chain.
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