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A Comparison of Traditional Purchasing Practice and JIT

Aspect of purchasing Lot size Frequency of delivery Contract with supplier(s) Sources Locations of supplier(s) Evaluation of suppliers Negotiation Transports Incoming inspection and counting Source: Adapted from Sykes (1988) Traditional practice JIT Varies Ranging from three times a day to twice a week to once a month One-year contract Single and dual source Mostly nearby (except overseas suppliers) Quality, cost, delivery Fair price, conformance Both bulk and small scale Continuously reducing Proton

Economic order quantity At required, perhaps no more than (EOQ) one days supply To suit EOQ Short term Multi-source Immaterial Price, quality, delivery Lowest price, quantity discount Bulk Strict Very frequent Long term Single source Nearby Quality, delivery price Fair price, long-term performance Small scale, reliable Eliminated