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Production Planning & Control

The Management of Operations
Volume 8, 1997 - Issue 2
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Original Articles

Implementation of JIT purchasing: An integrated approach

Pages 152-157
Published online: 15 Nov 2010
 

This article addresses the necessity of integration between buyer and supplier for effective implementation of the JIT system. An integrated lot-splitting model of facilitating multiple shipments in small lots is developed and compared with the existing approach in a simple JIT environment, single-buyer-single-supplier, under deterministic conditions for a single product. It is shown that the optimal policy adopted by the integrated approach can provide a strong and consistent cost-minimizing effect for both buyer and supplier over the existing approach.

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