Just-in- Time in Kalamazoo Essay

A firm specializing in motor homes locate in Kalamazoo, Michigan. Discusses changes in inventory and other cost since the recent working erupt of its market from the local Midwest to a national one. The companies also own to deal with another major problem because it only manufactures a a few(prenominal) of it components while the others atomic number 18 secured form outside vendors. In an attempt to degrade component part expenses, the president of the comp whatever considers implementing the Just-in-time system in his firm. The fair in time is a system developed by Toyota knowing to control quality develop supplier and distri b belyors relationship and minimize inventory.1.What is the ingrained annual cost of maintaining the components inventory at a lower place the present system? chthonic the present system the total cost to maintain the component per division is $1,292824.00 2.What would be the total annual cost of maintaining the components under the JIT system (As suming no safety stocks)? The annual cost of maintaining the components under the JIT system would be 3. Should Ballenger sustain 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 leave also ensure that parts are available to manufacture products and entrust better serve customers more effectively and efficiently. 4. If the JIT system is adopted are there 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 necessity to be more alert keen and discipline in ground of delivery whence the firm and the supplier would have to maintain sizeable communication skills to avoid any defects.6. Assume 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 subvert 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 take of carrying cost at which both Ballengers present system and a JIT system have comparable 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 especial(a) 100 percent.