Read the Additional Case Study JIT after a Catastrophe.pdf related to Chapter 16. You can find the JIT case in MyLab Operations Management by following these steps:
- Click on “Chapter Resources”
- Click “Chapter 16”
- Click “Media Assets”
- Check “Case Studies”
- Click “Find Now”
- Click on “JIT after a Catastrophe”
Using an organization that you are familiar with, describe your perception of its strategy regarding the number of suppliers to have for key components. Do you have any concerns with that strategy? Be sure to reference elements of the readings in your discussion.
After posting your inital response to the questions, respond to at least two others’ posts in the discussion.
Before you post, review the MGMT 3154 Discussions Grading Rubric.pdf to be sure you are meeting all requirements.
Reply on these two peers’s post:
First post : Maddey
One organization that I am familiar with that I mentioned in my last discussion post was the trucking center, which is called Freightliner. They deal with several suppliers daily bringing them different parts for semi-trucks, to either deliver to other shops or to fix other trucks at their shop. Freightliner depends on their suppliers a lot to bring them their supplies that they need to fix the semis and to deliver the parts that their customers want. Their customers also depend on them for their parts and services that they offer. If Freightliner didn’t have the supplies to offer their customers, they can find it somewhere else, but it might not be as convenient as some places might like. Some of Freightliner’s suppliers are Cummins, Caterpillar, and Detroit. Their strategy is a little risky because all of the suppliers and consumers depend on each other. If one of them goes out of business, then they will all suffer. Another thing that happens with suppliers is that when a product isn’t delivered in its designated time, it effects the customers and Freightliner. This is because the mechanics can’t fix the trucks because they don’t have the parts because they weren’t delivered, so the customers are then having to pay for their trucks to sit in the shop every hour they are waiting for the parts.
Second post: Alma
In high school when I worked at a fast food restaurant, I got the chance to learn, order, and organize inventory to help out the managers. By doing this, I quickly realized that a good chunk of our supply comes from 1 supplier which at first seemed logical, but I quickly realized sometimes it wasn’t the best soultion. I understand how beneficial it is to get all supplies from 1 supplier, but I remember certain times when the supplier delivered 2 or 3 days later than usual and we had no ingredients or products to give our customers. That is one of the downsides of relying on 1 supplier, however this didn’t happen often but if it did I am sure that the company would switch suppliers. I would also say that the company focused on JIT which usually runs smoothly and allows the company to have less inventory on hand than needed, but when there are problems with the supplier, like late deliveries, they affect the company’s inventory and the ability to produce sales. JIT is a great technique for some companies, but for some it isn’t. If my old fast food company still uses the same supplier, they could try switching inventory methods and not relying on JIT; they should have more inventory and backups if the deliveries continue to be late regulary.