Characterized by high stock volumes, poor customer service, and high operational costs, Judy Hawkins, the president of U.S Stroller thinks of deploying a JIT measure to increase the market share and maximize the profit margins. Since its inception in 1934, U.S Stroller has played a leading role in producing and selling of baby strollers in America. The organization enjoys a 40% market share at the prevailing market conditions with a turnover of 106,000 unit sale per year; that sounds like a good deal, right? The returns are approximately projected to be $ 4.5 million per year. The firm has ventured into a regular model, deluxe model, and shopping center stroller that came into scope in 1974. The production of stroller design is observed; this helps catch the customers’ attention, a gesture that is beneficial for the business. Through the MRP system, plan and control of inventories are managed efficiently. Managing the lot size that is produced by the EOQ formula saves on time and carrying the cost of stock with the aim of maximizing profits and lowering the cost of production.
Clearly, the market demands something that is less complicated, but rather convenient for their suitability. Clem, the director of the manufacturing plant, thinks of developing structures that run across that platform to beat the company’s competitors in the industry. By the purchase of inventories that can be delivered on a daily basis, the firm will save for all the inputs required for the manufacture of the three types of strollers. It is common in the organization that cell application would give diminished flexibility demanding changes when equipment is aligned with this particular line of product. The options that are available for the JIT manufacturing are numerous; the cost of production and inventory are lowered through this gesture. The tool considers the product quality by raising its standards. Firms intending to comer the market must put the JIT method into use as a recommendation that has been tried and results found to be outstanding.
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