Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers

Faraj El Dabee; Romeo Marian; Yousef Amer

doi:doi:10.11648/j.acis.20130103.12

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Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers

Faraj El Dabee, Romeo Marian, Yousef Amer

Received: 14 May 2013 Accepted: Published: 30 June 2013

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Abstract

In many organisations, Just-In-Time (JIT) implementation plays a significant role in minimizing their excessive costs, and increasing their efficiency. However, the risks accompanying JIT strategies are often overlooked and affect system processes disrupting the entire chain of supply. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed in order to ascertain an optimal ordering strategy for procuring raw materials by using multi-external suppliers and local backup supplier to reduce the total cost of the products, and at the same time to reduce the risks associated with JIT supply within production systems. The effectiveness of the developed model is tested using an example problem with inbuilt disruption. A comparison between the cost of using the JIT system and using the inventory system shows the superiority of the use of the inventory policy.

DOI	10.11648/j.acis.20130103.12
Published in	Automation, Control and Intelligent Systems (Volume 1, Issue 3, June 2013)
Page(s)	42-52
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Lean Manufacturing, Just-In-Time (JIT), Production System, Cost-Risk Reduction, Inventory Model, External Supplier, Local Backup Supplier

References

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APA Style

Faraj El Dabee, Romeo Marian, Yousef Amer. (2013). Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers. Automation, Control and Intelligent Systems, 1(3), 42-52. https://doi.org/10.11648/j.acis.20130103.12

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ACS Style

Faraj El Dabee; Romeo Marian; Yousef Amer. Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers. Autom. Control Intell. Syst. 2013, 1(3), 42-52. doi: 10.11648/j.acis.20130103.12

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AMA Style

Faraj El Dabee, Romeo Marian, Yousef Amer. Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers. Autom Control Intell Syst. 2013;1(3):42-52. doi: 10.11648/j.acis.20130103.12

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@article{10.11648/j.acis.20130103.12,
  author = {Faraj El Dabee and Romeo Marian and Yousef Amer},
  title = {Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers},
  journal = {Automation, Control and Intelligent Systems},
  volume = {1},
  number = {3},
  pages = {42-52},
  doi = {10.11648/j.acis.20130103.12},
  url = {https://doi.org/10.11648/j.acis.20130103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.acis.20130103.12},
  abstract = {In many organisations, Just-In-Time (JIT) implementation plays a significant role in minimizing their excessive costs, and increasing their efficiency. However, the risks accompanying JIT strategies are often overlooked and affect system processes disrupting the entire chain of supply. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed in order to ascertain an optimal ordering strategy for procuring raw materials by using multi-external suppliers and local backup supplier to reduce the total cost of the products, and at the same time to reduce the risks associated with JIT supply within production systems. The effectiveness of the developed model is tested using an example problem with inbuilt disruption. A comparison between the cost of using the JIT system and using the inventory system shows the superiority of the use of the inventory policy.},
 year = {2013}
}

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TY  - JOUR
T1  - Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers
AU  - Faraj El Dabee
AU  - Romeo Marian
AU  - Yousef Amer
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DO  - 10.11648/j.acis.20130103.12
T2  - Automation, Control and Intelligent Systems
JF  - Automation, Control and Intelligent Systems
JO  - Automation, Control and Intelligent Systems
SP  - 42
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PB  - Science Publishing Group
SN  - 2328-5591
UR  - https://doi.org/10.11648/j.acis.20130103.12
AB  - In many organisations, Just-In-Time (JIT) implementation plays a significant role in minimizing their excessive costs, and increasing their efficiency. However, the risks accompanying JIT strategies are often overlooked and affect system processes disrupting the entire chain of supply. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed in order to ascertain an optimal ordering strategy for procuring raw materials by using multi-external suppliers and local backup supplier to reduce the total cost of the products, and at the same time to reduce the risks associated with JIT supply within production systems. The effectiveness of the developed model is tested using an example problem with inbuilt disruption. A comparison between the cost of using the JIT system and using the inventory system shows the superiority of the use of the inventory policy.
VL  - 1
IS  - 3
ER  -

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Author Information

Faraj El Dabee

School of Engineering, University of South Australia, South Australia, Australia
Romeo Marian

School of Engineering, University of South Australia, South Australia, Australia
Yousef Amer

School of Engineering, University of South Australia, South Australia, Australia

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Plain Text BibTeX RIS

APA Style

Faraj El Dabee, Romeo Marian, Yousef Amer. (2013). Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers. Automation, Control and Intelligent Systems, 1(3), 42-52. https://doi.org/10.11648/j.acis.20130103.12

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ACS Style

Faraj El Dabee; Romeo Marian; Yousef Amer. Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers. Autom. Control Intell. Syst. 2013, 1(3), 42-52. doi: 10.11648/j.acis.20130103.12

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AMA Style

Faraj El Dabee, Romeo Marian, Yousef Amer. Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers. Autom Control Intell Syst. 2013;1(3):42-52. doi: 10.11648/j.acis.20130103.12

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@article{10.11648/j.acis.20130103.12,
  author = {Faraj El Dabee and Romeo Marian and Yousef Amer},
  title = {Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers},
  journal = {Automation, Control and Intelligent Systems},
  volume = {1},
  number = {3},
  pages = {42-52},
  doi = {10.11648/j.acis.20130103.12},
  url = {https://doi.org/10.11648/j.acis.20130103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.acis.20130103.12},
  abstract = {In many organisations, Just-In-Time (JIT) implementation plays a significant role in minimizing their excessive costs, and increasing their efficiency. However, the risks accompanying JIT strategies are often overlooked and affect system processes disrupting the entire chain of supply. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed in order to ascertain an optimal ordering strategy for procuring raw materials by using multi-external suppliers and local backup supplier to reduce the total cost of the products, and at the same time to reduce the risks associated with JIT supply within production systems. The effectiveness of the developed model is tested using an example problem with inbuilt disruption. A comparison between the cost of using the JIT system and using the inventory system shows the superiority of the use of the inventory policy.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Development of a Model for Simultaneous Cost-Risks Reduction in JIT Systems Using Multi-External and Local Backup Suppliers
AU  - Faraj El Dabee
AU  - Romeo Marian
AU  - Yousef Amer
Y1  - 2013/06/30
PY  - 2013
N1  - https://doi.org/10.11648/j.acis.20130103.12
DO  - 10.11648/j.acis.20130103.12
T2  - Automation, Control and Intelligent Systems
JF  - Automation, Control and Intelligent Systems
JO  - Automation, Control and Intelligent Systems
SP  - 42
EP  - 52
PB  - Science Publishing Group
SN  - 2328-5591
UR  - https://doi.org/10.11648/j.acis.20130103.12
AB  - In many organisations, Just-In-Time (JIT) implementation plays a significant role in minimizing their excessive costs, and increasing their efficiency. However, the risks accompanying JIT strategies are often overlooked and affect system processes disrupting the entire chain of supply. This paper proposes an inventory model that can simultaneously reduce costs and risks in JIT systems. This model is developed in order to ascertain an optimal ordering strategy for procuring raw materials by using multi-external suppliers and local backup supplier to reduce the total cost of the products, and at the same time to reduce the risks associated with JIT supply within production systems. The effectiveness of the developed model is tested using an example problem with inbuilt disruption. A comparison between the cost of using the JIT system and using the inventory system shows the superiority of the use of the inventory policy.
VL  - 1
IS  - 3
ER  -

Copy | Download