Total system JIT outcomes: inventory, organization and financial effects

Cindy Claycomb · Richard N. Germain · Cornelia Dröge

118 citations0/0 files storedInternational Journal of Physical Distribution & Logistics Management

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Quality and Supply Management Supply Chain and Inventory Management Management and Optimization Techniques

Abstract

Despite anecdotal evidence of the performance implications of just‐in‐time (JIT) implementation, little empirical research has been conducted. Examines total system JIT’s empirical relationships with a variety of performance outcomes. Total system JIT encompasses JIT purchasing, JIT production, and JIT selling. In a mail survey of 200 logistics executives, total system JIT was found to be: inversely related to weeks of inventory (inclusive of inbound, in‐process, and outbound); inversely related to the number of layers in various functional areas (e.g. marketing); and positively related to three different indicators of financial performance (ROI, profits, and ROS). Results, managerial implications, and further research are discussed.

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References

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