Several points were made in the article. Companies adopting JIT would need to build closer relationships...

 

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Several points were made in the article. Companies adopting JIT would need to build closer relationships with suppliers and customers. Ideally, goods would be produced only in time to meet the customer's needs. Similarly, supplies would arrive only at the time necessary, and would spend little more time in the plant than the time being worked on or moved between work centers. If the plant was to produce the same range of products in the future, minimizing inventory yet retaining the same response time to customer demands, something would have to give. That "something" appeared to be lot sizes. And, if lot sizes were reduced, there would be more setups. What would that do to the effective plant capacity? Several points were made in the article. Companies adopting JIT would need to build closer relationships with suppliers and customers. Ideally, goods would be produced only in time to meet the customer's needs. Similarly, supplies would arrive only at the time necessary, and would spend little more time in the plant than the time being worked on or moved between work centers. If the plant was to produce the same range of products in the future, minimizing inventory yet retaining the same response time to customer demands, something would have to give. That "something" appeared to be lot sizes. And, if lot sizes were reduced, there would be more setups. What would that do to the effective plant capacity?

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If lot sizes were reduced there would be more setups required to switch from producing one product to another This would decrease the effective plant ... View the full answer