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Lean - Just in time supply chain


Lean Just in time supply chain : The lean just in time supply chain is what automotive & component manufacturers operate. They are designed as pull systems and respond to customer needs as efficiently as possible, with minimal work in progress, inventory levels, flexible capacity and waste . Sharing of production schedules, production data, quality, and consumer demand is necessary to achieve greater efficiencies in terms of inventory holdings and production requirements across the whole supply chain .

The pros of this type of supply chain:

-Efficient low cost supply chain with high inventory turnover.
-Ability to predict and respond to consumer demand patterns better
-Low inventory levels due to efficient inventory ordering reducing the amount of working capital required and inventory holding costs

The cons of this type of supply chain:

-Requires highly skilled resources and technology to plan and operate
-Requires sharing of confidential information
-Requires an initial high cost if converting an existing inefficient supply chain to this model.


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