Chapter 08 - Combining with Other Production Modes
Q: I understand that the just-in-time inventory management method is able to cope with slight fluctuations in demand, but can it cope when those fluctuations are large?
A: The just-in-time inventory management method can operate only when demand is level. If there are great fluctuations in market demand and demand from subsequent processes, we would have to install a just-in-time inventory management method that will flatten out that demand. A situation in which there are large fluctuations in market demand that make it difficult to level off production in the factory is a situation well suited to the Advanced Planning and Scheduling System. The Advanced Planning and Scheduling System demonstrates its effectiveness in visualization and reducing lead-time both when demand can be flattened out and when it cannot.
Related article : Just-In-Time Products and Non-Just-In-Time Products