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THE JUST-IN-TIME INVENTORY EFFECT: DOES IT HOLD UNDER DIFFERENT CONTEXTURAL, ENVIRONMENTAL AND ORGANIZATIONAL CONDITIONS?
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1998
Year
Inventory TheoryProduction ManagementJust-in-time Inventory EffectBehavioral Operation ManagementOrganizational BehaviorJit PercentageInventory ManagementInventory ControlManagementLogisticsQuantitative ManagementManagement AnalysisInventory DecreaseInverse RelationshipSupply Chain ManagementMarketingBusinessField Inventory ManagementPurchasing
When the percentage of purchases, production and sales made on a just-in-time (JIT) basis increases, weeks of inventory decrease. This study demonstrates the nature of this inverse relationship in a wide variety of conditions that differ in contextural, environmental and organizational factors. On average, inventory is cut from between five to six weeks to less than two weeks as the JIT percentage goes from zero to one hundred.