The applications of computer and internet have globalized the customers’ choice. Due to global competition and customer diversifications, the industry concentrates more on competitive lead through proper supply chain management. Properly designed and implemented Supply Chain Management (SCM) is vital for any organization to counter competition (Choi et al., 2007). The current scenario demands newer approaches for SCM. Traditionally, inventory has been considered as an asset. In a Just In Time (JIT) environment, inventory is considered as a liability. First, in the JIT philosophy, inventory is a waste. It adds to cost, but does not contribute to the value of the final product. Second, the JIT philosophy involves a never-ending cycle of problem identification and solution. Inventory permits many problems to be hidden, and thus is a hindrance to never-ending improvement (Demmy and Constable, 1988).
JIT is a well-known Japanese production technique. JIT outlines the purchase of raw materials, sub-assemblies and finished components at right quality and right price, process the materials at right time when required to be assembled into the final product, and produce and deliver the final product at the right time. This philosophy came into existence after the World War II as a result of competition between Japanese industries and American industries. Japanese company Toyota has employed this concept to enhance the productivity of the company. There are different elements to implement the JIT concept.
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