The JIT materials management system in developing countries

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The JIT materials management system in developing countries

Author Info

Gul Polat
David Arditi

Abstract

The just-in-time (JIT) approach to materials management appears to be superior to a just-in-case (JIC) approach in terms of reducing cost and improving productivity under most circumstances encountered in industrialized countries. However, is it truly more advantageous than the more commonly used approaches in developing countries? Contractors in developing countries may be compelled to keep excessive inventory under some circumstances to help manage uncertainty in the supply chain and production process, high inflation rates, available discounts on prices of large amounts of materials, and price cuts in case of early purchasing. This study presents a comparison of the JIT and JIC materials management systems in terms of total cost of inventory by means of a simulation model that makes use of actual data obtained from an ongoing trade centre project in Istanbul, Turkey. The study suggests that had the JIT system been used in the project in Istanbul the total cost of inventory would have been 4.4% higher than the total cost of inventory in the JIC system currently used.

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Article provided by Taylor and Francis Journals in its journal Construction Management & Economics.

Volume (Year): 23 (2005)
Issue (Month): 7 (September)
Pages: 697-712
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Handle: RePEc:taf:conmgt:v:23:y:2005:i:7:p:697-712

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Andrew Agapiou, Roger Flanagan, George Norman, David Notman, 1998. "The changing role of builders merchants in the construction supply chain," Construction Management & Economics, Taylor and Francis Journals, vol. 16(3), pages 351-361, May. [Downloadable!] (restricted)
Eric T. T. Wong, George Norman, 1997. "Economic evaluation of materials planning systems for construction," Construction Management & Economics, Taylor and Francis Journals, vol. 15(1), pages 39-47, January. [Downloadable!] (restricted)
Low Sui Pheng1, Stephanie K.L. Tan, 1998. "How 'just-in-time' wastages can be quantified: case study of a private condominium project," Construction Management & Economics, Taylor and Francis Journals, vol. 16(6), pages 621-635, November. [Downloadable!] (restricted)
Low Sui Pheng, Mok Sze Hui, 1999. "The application of JIT philosophy to construction: a case study in site layout," Construction Management & Economics, Taylor and Francis Journals, vol. 17(5), pages 657-668, September. [Downloadable!] (restricted)

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