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JUST IN TIME - Coggle Diagram

- - - - Issues with their current method
        
        Using JIT for packaging can be ineffective as finished products may end up sitting around while waiting for packagings to be delivered, this could affect quality of the dog food
        
        Stock of raw materials for dog food can go bad after a period time => Wasting capital invested
        
        Frozen materials may not be as high quality which could lead to the business losing sales to competitors.
  - - - Why should they do this?
        
        Prevent the risk of raw materials and finished products going bad
        
        All finished products can be packaged and delivered immediately
        
        Materials can be sourced locally as the business can stay more flexible with the suppliers. => Reduce delivery cost and time
- - - - JIT helps in minimizing excess inventory, reducing the chances of waste in terms of unused materials and storage costs.
    - - By reducing inventory holding costs and utilizing resources more efficiently, JIT can contribute to overall cost savings.
    - - JIT promotes a streamlined and efficient production process, ensuring that materials and labor are used precisely when needed.
  - - - Work with suppliers to deliver mixed concrete only when you need it for pouring foundations.
    - - Prefabricated wall panels, including framing, insulation, and sheathing, can be delivered and installed just-in-time, significantly reducing on-site construction time.
    - - Coordinate with window suppliers to ensure windows arrive just before installation, preventing potential damage and reducing storage requirements.
- - - - Drawback: However, if the car tyre service business may dissatisfy customers if the suppliers do not deliver stocks on time which damages the business reputation and brand image. Thus, the car tyre business may be less competitive in the market.
    - - Cost efficiency
        
        JIT minimizes the need for large and costly inventory storage. Car tire services dealing with a wide range of tire sizes may find it more cost-effective to order less common sizes as needed, reducing carrying costs and the risk of obsolescence.
      - Space Optimization
        
        Car tire services often have limited space for storing large quantities of tires. JIT allows for more efficient use of available space, as the service provider only keeps a minimal inventory of less common tire sizes, freeing up space for other purposes.
      - Reducing holding costs
        
        Holding large inventories ties up capital in stored goods. JIT helps minimize holding costs associated with maintaining excessive stock levels. By ordering tires on-demand, the service provider can allocate resources more effectively.