Continuous Improvement Tools

Santos, Javier; Wysk, Richard A.; Torres, José Manuel

doi:10.1002/9781118984031.ch1

Cited by 2 publications

(1 citation statement)

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“…Although, currently, organizations such as Dell, Walmart and many others have earned their success, at least in part, as a result of the JIT management strategy (Michelsen et al, 2014), the ultimate goals of a JIT system, zero-inventories and zero set-up times, are impossible to achieve even in the best JIT-lean applications (Ali et al, 2012;Darlington et al, 2016;Santos et al, 2006). Thus, in these contexts, a common question belonging to the field of inventory theory inexorably arises: what is the optimal smallest lot-size with frequent deliveries that should be used?…”

Section: Introductionmentioning

confidence: 99%

An integrated production-inventory model for deteriorating items to evaluate JIT purchasing alliances

Pérez¹,

Torres²

2019

10.5267/j.ijiec

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The implementation of just-in-time (JIT) principles has been shown to be worthy of analysis due to its potential economic benefits. Yet, while several empirical studies have reported the success of adopting JIT management concepts, little work has been accomplished in offering analytical tools for assisting managers for implementing JIT strategy. This paper proposes a new inventory model to better embrace JIT purchasing. In pursuing this goal, we develop a deterministic singlesetup multiple-delivery model for deteriorating items by considering the effect of the time value of money (TVM). We propose a solution procedure to determine the optimal decisions that maximize the discounted profit function of this analytical model, and compare it with some other alternatives. Here, we show the derivation of the mathematical model, the algorithm of the proposed solutions, and the application of the new approach through two numerical experiments. The study reveals that modeling the TVM effect complicates the determination of an optimal JIT inventory policy; nevertheless, we find that accounting for TVM can be decisive in terms of promoting and implementing JIT purchasing agreements.

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Section: Introductionmentioning

confidence: 99%