Question

Considering Lean operations and JIT, in 5-7 sentences answer the question below.

What other items might the seller or supplier need to think about when creating this contractual relationship?

Answer 1

Some of the items that the seller need to think while creating the contractual relationship are;

* He needs to think about the reasoning very wisely of what he will and will not contract.

* Before starting the planning of the project he need to think about the work that he will contract for the project.

* The supplier need to consider the cost structure by keeping in high consistency.

* The negotiation strategy must be given priority to make the right deal.

* The agreements between the parties need to be considered such as payment term, delivery schedule etc.