A comparison of inventory cost reduction strategies in a JIT manufacturing system

Abstract

SUMMARY Although many companies have found JIT manufacturing to be a very effective manufacturing strategy, few models have been developed which can help direct JIT efforts. This article discusses some of the problems with modelling JIT manufacturing, it describes some simple models of inventory costs in a JIT system and it uses these models to evaluate alternative inventory-cost reduction strategies in a printed circuit board (PCB) assembly system.

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