Changes

Just In Time inventory systems have several advantages: less [[warehouse]] space, less [[capital]] tied up in parts inventory, and less [[risk]] of parts obsolescence.

Just In Time inventory systems have several advantages: less [[warehouse]] space, less [[capital]] tied up in parts inventory, and less [[risk]] of parts obsolescence.

The downside is that lean inventories leave companies vulnerable to any disruption of [[supply]], for instance in the [[food distribution system]] or [[food production system]]. If [[transportation]] ([[UPS]], [[post office]], Fedex, [[truck]]s, [[ship]]s, [[railroad]], and [[airplane]]s) gets snarled due to a trucker strike or bad [[weather]] or a disaster, or if [[communication]]s get disrupted, or a parts vendor has a [[strike]] or a [[production]] problem, then [[assembly line]]s grind to a halt. Just one missing part means that no finished products go out the door.

The downside is that lean inventories leave companies vulnerable to any disruption of [[supply]], for instance in the [[food distribution system]] or [[food production system]]. If [[transportation]] ([[UPS]], [[post office]], FedEx, [[truck]]s, [[ship]]s, [[railroad]], and [[airplane]]s) gets snarled due to a trucker strike or bad [[weather]] or a disaster, or if [[communication]]s get disrupted, or a parts vendor has a [[strike]] or a [[production]] problem, then [[assembly line]]s grind to a halt. Just one missing part means that no finished products go out the door.

The kanban concept has also been taken up by most of America's [[retail]]ers (with [[Wal-Mart]] leading the way), most notably its grocery sellers. In the old days — say, twenty years ago — [[grocery store]]s had well-[[stock]]ed back rooms, with many extra cases of dry [[goods]]. But now in most [[store]]s the back room has been replaced with just a pallet-breakdown area. Merchandise comes in from distribution centers and it all goes immediately to the [[consumer]] shelves out front. Thus, what you see on the grocery store shelf is all that the store has on hand. What you see is what you get. The barcode [[scanner]]s at the checkout counters feed a complex reordering system. If Mrs. Jones buys three jars of [[pasta]] sauce, that could [[trigger]] a reorder for three more jars. As long as [[communication]]s and [[transportation]] work smoothly, then the entire system hums along like a Swiss watch. But what happens when the transportation [[infrastructure]] gets disrupted? [[Panic]] buying can clean out supermarket shelves in a matter of hours. People are therefore well-advised to get prepared in advance. Consumers may not be able to count on being able to buy anything to provide for themselves and their [[family|families]] during or after a disaster.<ref>[https://www.amazon.com/Christopher-Steiner/e/B001UO7HUG/ref=dp_byline_cont_pop_book_1 Christopher Steiner], ''20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better'', https://www.amazon.com/20-Per-Gallon-Inevitable-Gasoline/dp/B0046LUJCS Accessed December 15, 2014</ref>

The kanban concept has also been taken up by most of America's [[retail]]ers (with [[Wal-Mart]] leading the way), most notably its grocery sellers. In the old days — say, twenty years ago — [[grocery store]]s had well-[[stock]]ed back rooms, with many extra cases of dry [[goods]]. But now in most [[store]]s the back room has been replaced with just a pallet-breakdown area. Merchandise comes in from distribution centers and it all goes immediately to the [[consumer]] shelves out front. Thus, what you see on the grocery store shelf is all that the store has on hand. What you see is what you get. The barcode [[scanner]]s at the checkout counters feed a complex reordering system. If Mrs. Jones buys three jars of [[pasta]] sauce, that could [[trigger]] a reorder for three more jars. As long as [[communication]]s and [[transportation]] work smoothly, then the entire system hums along like a Swiss watch. But what happens when the transportation [[infrastructure]] gets disrupted? [[Panic]] buying can clean out supermarket shelves in a matter of hours. People are therefore well-advised to get prepared in advance. Consumers may not be able to count on being able to buy anything to provide for themselves and their [[family|families]] during or after a disaster.<ref>[https://www.amazon.com/Christopher-Steiner/e/B001UO7HUG/ref=dp_byline_cont_pop_book_1 Christopher Steiner], ''20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better'', https://www.amazon.com/20-Per-Gallon-Inevitable-Gasoline/dp/B0046LUJCS Accessed December 15, 2014</ref>