"Just-in-time" and its Logistic

This figure illustrates a relatively recent concept in the domain of industrial manufacturing – "just in time". This new notion amplifies the role of freight transport, particularly in trucking. It involves the delivery of a component just before the assembly line requires it. Consequently, freight forwarders must respect tighter delivery schedules and must plan their operations accordingly in order to avoid strict delay penalties. The production unit (the factory) assumes a lower level of warehousing. As a result, the trucks (vehicles) themselves assume the task of moving storage units, thus the inventory is constantly in circulation.

Copyright © 1998-2008, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. Permission MUST be requested prior to use.