As it relates to JIT which offer more functionality Distribution Facilities or Warehouse Facilities? Why??
As it relates to JIT which offer more functionality Distribution Facilities or Warehouse Facilities? Why??
Homework Answers
The functions of the distribution facilities are:
- To fulfill the orders on-time to meet the customer demand.
- It has very little storage function as it does not store the inventory
- Its primary purpose is based on the throughput of the inventory that they carry.
The functions of the warehouse facilities are:
- Storage of goods for an extended period of time
- Goods are released on demand for production flow or for distribution.
- The function is more of buffer related functions.
JIT is the acronym for Just in Time. The main purpose of JIT is to reduce the inventory cost. The company operates at a lower level of inventory and increases efficiency by decreasing waste. Hence, this concept is related to the functions of distribution facilities. JIT helps in reducing the distribution of cost as it carries only the inventory that meets the customer demand. Distribution facilities require JIT to integrate with the supply chain initiatives to function efficiently.
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As it relates to JIT which offer more functionality Distribution
Facilities or Warehouse Facilities? Why??
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