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Recent Events in the Global Scene Have Had a Significant Impact on Supply Chains Especially Jit Operations. Discuss What These Events Are and Their Impact on the Role of Warehousing in the Supply Chain

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Submitted By cmlong80
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Warehousing and Inventory Management

Assignment 1, Question:-

Recent events in the global scene have had a significant impact on supply chains especially JIT operations. Discuss what these events are and their impact on the role of warehousing in the supply chain.

JIT or Just-In-Time has been defined as an inventory control whereby is to maintain or control just right quantity materials in just right place at the just right time for the just right amount of products or manufacturing (Lee White, 1985). JIT concept was originated in Japan in the 1950s when the Toyato Motor Company developed a system known as “Kanban” to meet customer demand for various models with minimum delivery delays.
When we talk about JIT we cannot run away from warehousing as warehousing is part of a supply chain logistic network. Warehousing is used for store or house of inventory for all stages of a supply chain

JIT is a demand pull system in which manufacturing planning begins with the final assembly line and works backwards, not only through the various manufacturing processes, but also to the vendors and subcontractors supplying materials and components. Therefore two things must happen in order for JIT to work:

➢ All parts/materials/components must arrive where they are needed, when they are needed and in the exact quantity needed ➢ All parts/materials/components that arrive must be usable parts

Hence any natural disasters occurred it will certainly affect the impact on supply chains especially JIT to the factory. Following are how great calamities like the civil war in Middle Eastern countries (Libya, Egypt, and Syria), Great East earthquake and Tsunami in Japan and heavy flooding in Thailand have an impact on production networks of automobile spare parts, hard disk drives, oil, rice, precision parts and electronics supplies facing stoppage, shortage, delay

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