A JIT Inventory Model For Supply Chain Management

As the technology innovation and economy development,globalized information network and competitive market is constructing. As for the influencing factors of this, two main aspects can be divided: on the one hand, enterprises are facing greater markets and greater demand; on the other hand, enterprises are also facing more intense competition. It induces the competition change from enterprise phase to supply chain phase. In this context,"how can we effectively improve the competitiveness of enterprises and the supply chain"to become a very important theoretical and practical significance to the subject.In this paper, using the supply chain view, we try to guide these companies to make the best purchasing decisions in different stages of implementation JIT procurement system.While the implementation of JIT procurement system is still in the initial stage, that how to make the best purchasing strategy is affected by both raditional procurement system and JIT procurement system. We try to guide these companies to make the best purchasing decisions. Then this paper discusses fixed transportation costs and unit shortage cost factors on the choice of order quantity, the total cost and delivery point, and it comes to a conclusion: fixed transportation costs higher, firms tend to reduce the delivery number of times; while unit shortage cost is higher, it is better to increase the order quantity of the enterprise.In this paper we attempt to fill a gap in the existing literature, much of which focuses on direct, two-echelon, buyer–supplier coordination. Considering a three-echelon, more complex structures involving multiple buyers and suppliers supply chain, we also try to help these companies make the best decision for the optimal order level and the optimal delivery strategy. At the last, the paper gives the algorithm procedure and numerical example for the model. It also comes to a conclusion: as order quantity increases, the implementation of the JIT system gains more benefits than the traditional supply chain system.