Using JIT in a Green Supply Chain
Read this article on the Green Supply Chain. The authors analyzed the JIT approach to a transportation supply chain. As you read, think about what JIC materials, goods, and labor must be on hand in order to deliver JIT products?
Modeling and Assumptions
Basic Model Assumptions
- The demand for each period is known.
- Shortage of stock is not allowed.
- Wear and tear are not considered.
- Manufacturing suppliers are able to coordinate with those in production regarding the modes of ordering and delivery in Scenario 2.
- The ordering time is a fixed period.
- The arrival time is a fixed period.
- The inventory transport mode in situation 1 cannot be used interchangeably but must be utilized for each type of good.
- The maximum inventory-related parameters are updated every five working days.
- In Scenario 2, the maximum inventory-related coefficients LT and SSLT are fixed and are not subject to change.
- In Scenario 2, transportation vehicles going from the logistics distribution center to the distribution location sufficiently accommodate goods provided by the supply manufacturers.
- An order is placed every five working days.
- Goods arrive every ten days, a schedule equal to that of two previous orders.