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.