Role of JIT Principles in a Dyadic Supply Relationship- A System Dynamics Simulation Analysis

Role of JIT Principles in a Dyadic Supply Relationship- A System Dynamics Simulation Analysis

World Journal of Management

Vol. 6. No. 2. , September 2015, Pages: 16 – 31

Role of JIT Principles in a Dyadic Supply Relationship- A System Dynamics Simulation Analysis

Mahesh Prabhu H and Lewlyn L R Rodrigues

In today’s changing business environment, supply chain management is a significant source of gaining competitive advantage. Competitive advantage can be obtained by virtue of competing on price, quality, and time to deliver, which can be attained by exploring and elimination of the sources of waste in different stages of the production process. This paper focuses on studying the impact of implementing Just in Time (JIT) technique in a dyadic supply relationship on inventory, cost, and profits. System Dynamics approach of modeling and simulation consisting of a supplier and manufacturer is developed and simulated for the study of multiple scenarios. A comparative analysis is made to study the impact of JIT on inventory, cost and profit. The simulation results indicate that JIT deliveries would enhance the operational efficiency of the firm and helps the firm to gain a competitive edge. Based on the findings, implications have been drawn for effective implementation of JIT.

Field of Research: Management, Supply chain, Just In Time, System Dynamics.

DOI : http://dx.doi.org/10.21102/wjm.2015.09.62.02