Allows a manufacturer to incorporate its suppliers effort toward eliminating waste. It focuses in reduction of inventories throughout the logistical system of manufacturing firms involved and provides a careful audit of the production process. It optimizes supplier and customer relations.
In a production plant, needed materials are to be supplied “Just In Time”. Production costs will decrease as required level of stock is reduced. Materials from suppliers will be ordered only if production plant can sell its product. Quality control of production is enhanced. All stages of production are closely monitored.
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