JIT seeks to minimize inventory by reducing safety stock. Safety Stock are inventories that are held in addition to cycle stock to guard against uncertainty in demand or lead time. Should the organisation practice JIT or Safety Stock or both? And why?

JIT seeks to minimize inventory by reducing safety stock. Safety Stock are inventories that are held in addition to cycle stock to guard against uncertainty in demand or lead time. Should the organisation practice JIT or Safety Stock or both? And why?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

JIT seeks to minimize inventory by reducing safety stock.

Safety Stock are inventories that are held in addition to cycle stock to guard against uncertainty in demand or lead time.

Should the organisation practice JIT or Safety Stock or both? And why?

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