Just-in- Time in Kalamazoo Essay

A firm specializing in motor homes located in Kalamazoo, Michigan. Discusses changes in inventory and other make up since the recent expansion of its marketplace from the local Midwest to a national one. The companies also have to deal with another major problem because it only manufactures a few of it components while the others atomic number 18 purchased form outside vendors. In an attempt to reduce component part expenses, the president of the company considers implementing the Just-in-time administration in his firm. The just in time is a system developed by Toyota designed to control quality develop supplier and distributors relationship and minimize inventory.1.What is the total annual cost of maintaining the components inventory low the present system? Under the present system the total cost to maintain the component per year is $1,292824.00 2.What would be the total annual cost of maintaining the components chthonian the JIT system (Assuming no guard stocks)? The annua l cost of maintaining the components under the JIT system would be 3. Should Ballenger take into account any other cost or benefits from JIT system?if so what are they?With the JIT system Ballenger would be less concern about maintaining a large inventory and they would less likely to experience shrinkage. The just-in-time system go forth also ensure that parts are available to manufacture products and will better serve customers more effectively and efficiently. 4. If the JIT system is adopted are in that location safety sticks of any item that should be maintained? If so which ones and how much If JIT system is adopted DVD players should be placed under capacity safety because they seem to be quite expensive. 5.If JIT system is adopted, what changes if any should occur in the relationships between Ballengers firm and his suppliers of components? Discuss They would need to be more bustling keen and condition in terms of delivery therefore the firm and the supplier would have t o maintain good communication skills to avoid any defects.6. sham that Ballenger has switched to the JIT system and that he receives a surprise phone call from a competitor who is going out of business. The competitor wants to sell Ballenger 7,000 dome lights of the type listed in Exhibit 2-A. Should Ballenger buy them? If so, at what price? I dont think that Ballenger should purchase these lights because according to the JIT system one of its aim is to instill discipline and this therefore will ruin such vision not only that but Ballenger would also have to consider storage for these light bulbs. 7. Carrying cost are 20 percent. Is there a level of carrying cost at which both Ballengers present system and a JIT system have similar cost what is that? There wont be a level when the two systems have the same cost but if so it would be at a extremely high rate possible exceeding 100 percent.