GMS 401 Lecture Notes - Lecture 3: Jelly Bean, Kanban, Manual Fire Alarm Activation

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Omid Jadidi

Document Summary

With jit, materials arrive where and when they are needed. Jit reduces costs associated with excess inventory, cuts variability and waste, as well as improves throughput. Effective jit requires a meaningful buyer-supplier partnership. Jit partnership; partnership of suppliers and purchasers that removes waste and drives down costs for mutual benefits. Inventory can also be reduced through a technique known as consignment. Consignment inventory; an arrangement in which the supplier maintains title to the inventory until it is used: obtaining improved quality and reliability through long- term commitments, communication, and co-operation. Such relationships require a high degree of respect by both supplier and purchaser. 1; diversification: suppliers may now want to tie themselves to long-term contracts with one customer. The suppliers perception is that they reduce their risk if they have a variety of customers. 2; scheduling: many suppliers have little faith in the purchaser"s.