Discussion Mod 10

Does the location of a particular supplier’s facility affect whether or not they can serve as a JIT supplier? What inventory management strategies should they employ in this case?For our discussion, let’s suppose that our organization produces dashboard panels for automobiles, in a variety of colors and configurations. Our main production facility is located on the east side of Atlanta, and we have just signed a contract to serve as a JIT supplier for an automotive manufacturer on the west side of Atlanta, which produces a variety of automobile models, in a variety of colors and options. (Don’t forget about crazy Atlanta traffic!). Let’s discuss our approach to JIT delivery to this customer:What transportation mode(s) should we use? Should we own our own transportation equipment?

Should we have a backup transportation plan, and what should it be?

Should we make to order, make to stock, or a combination of the two?

Do we need a distribution warehouse, or should we ship direct?

What kind of an inventory control system should be in place?

What kind of communication link should be in place between our organization and our customer?