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Effect of the characteristics of the purchased products in JIT purchasing implementation

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    Abstract

    JIT purchasing, as many other trends in supply management, is not applicable to any circumstances, rather its implementation responds to particular factors. Focusing on the characteristics of the purchased products, this paper contributes to identifying some of these factors. Seven variables, volume, specificity, technological complexity, essentiality, fragility, variability and economic value of procured products, have been analysed and their effects on JIT purchasing implementation have been tested over a sample of 152 Spanish auto component manufacturers. In order to precise such effects, four dimensions of JIT purchasing have been distinguished: operational, relational, involvement and quality practices. Results show that companies do not pursue the minimisation of inventory maintenance costs, but they seem to be motivated by objectives such as quality, responsiveness, innovation or minimisation of circulating capital. Thus, operational JIT purchasing practices are mainly applied to fragile and expensive products whereas the other complementary practices are applied to specific, technologically complex and essential purchases.

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    Paper provided by Interuniversity Research Master and Doctorate Program (with a quality mention of ANECA) on "Business Economics", Universities of Valladolid, Burgos, Salamanca and León (Spain). Until 2008, Interuniversity Doctorate Program (with a quality mention of ANECA) “New trends in Business Administration”, Universities of Valladolid, Burgos, and Salamanca (Spain). Master en Investigación y Programa de Doctorado Interuniversitarios (con mención de calidad de la ANECA) en "Economía de la Empresa", Universidades de Valladolid, Burgos, Salamanca y León (España). Hasta 2008, Programa de Doctorado Interuniversitario (con mención de calidad de la ANECA) “Nuevas Tendencias en Dirección de Empresas”, Universidades de Valladolid, Burgos y Salamanca (España). in its series Working Papers "New Trends on Business Administration". Documentos de Trabajo "Nuevas Tendencias en Dirección de Empresas". with number 2000-09.

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    Date of creation: Dec 2000
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    Publication status: Published in International Journal of Operations and Production Management, vol. 22, no. 8, pages 868-886.
    Handle: RePEc:ntd:wpaper:2000-09

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    Keywords: JIT purchasing; purchased products; auto components industry; Spain.;

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