•Time-based arrangements reduce the overall inventories by developing the capability to respond rapidly to exact to exact manufacturing or retail customers.
•If the products/materials can be delivered quickly, it may not be necessary to maintain inventories at manufacturing plants/ retail stores.
•If replenishment can be achieved rapidly less safety stock will be required and instead of stockpiling and holding safety stock the requirement will be to receive the exact quantity of inventory at the time required.
•Time-based programmes tend to reduce shipment sizes, which in turn increases the number, frequency, cost of shipments and hence higher transportation cost.
•An effective logistical arrangement will be to achieve a trade-off resulting into desired customer service at the lowest total cost.
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