Supply Chain Innovations, Essay Example

Just-in-time, JIT is a significant concept and philosophy in supply chain innovations of an organization with respect to sustainability of the company’s competitive advantage on the premise of waste elimination coupled with continuous improvement. The use of the JIT system in the organization facilitates for pulling of work through a variety of operations with the use of signals that are also called “Kanban” star at user and extending to the supplier. The appropriateness of JIT is evident in cases of repetitive production of high volumes of standard goods and services whose demand in the market is consistent. The success of JIT philosophy in supply chain is reflected in products of extremely high quality along with components that are made under a logistic system that is capable as well as precise in materials management along with physical distribution. Under JIT philosophy, the necessary materials are made available at the time of their application and never earlier or later therefore increasing efficiency in the supply chain.

On the other hand, the implication of Material Requirements Planning, MRP in supply chain is a system of flow-control whose design facilitates for the ready availability of components as well as parts immediately they are required in the course of the supply chain. Material Requirements Planning makes use of an efficient and automated information system whose design is tailored to take account of ordering as well as scheduling dependent demand inventories of the supply chain. Material Requirements Planning is an important philosophy in the management of a company’s manufacturing processes and most companies prefer the use of a software for higher efficiency (Ptak & Smith, 2011).

Material Requirements Planning and JIT play an important role in the maintenance of appropriate inventory levels in the organization. Both have been integrated in systems with repetitive features in their manufacturing processes for easier management and ultimately of practical solutions to problems experienced in the real world.

References

Ptak, C. & Smith, C., (2011). Orlicky’s MRP 3^rd ED., N Y: McGraw Hill.