Question

JIT has caused most major chains such as Wal-mart, Target, Vons, Stater Bros. to use distribution center as oppose to warehouses Do you agree or disagree? Why

Answer 1

The Just-in-Time concept means a business module that needs to respond to ever changing market demand, and has a shorter product life cycle for which, in order to remain competitive, the manufacturer has to cut upon the production lead time, reduce transportation time as well as the set-up time. The management of the same can only fruitful if the batch sizes is reduced as there could be an increase in the variety although the total demand may not. Further the inventory level in production as well as in transportation systems must be in control.

“JIT has caused most major chains such as Wal-mart, Target, Vons, Stater Bros. to use distribution center as oppose to warehouses”. I agree to this statement because in various Companies, operations are mostly repetitive in nature and hence this concept could be adaptable. Moreover, when the volume of deliverables is very high and the company assures it to be delivered within a very short but specific time period, it makes more sense to store the same at the Distribution center for timely distribution of the same rather than trying to avail the same from the warehouses. If the warehouse is involved much in the picture, then the concept of JIT itself fails. Moreover, if the items dealt with is mostly tangible in nature and also incase of the industry which is linked to the service sector like that of Mc Donald’s, the concept of distribution center add more value to JIT. Besides, the use of distribution center also gives the overall following advantages by incorporating JIT into the system:

• Consistently high quality
• Uniform facility loading
• High efficiencies achieved by analyzing work methods and standardizing