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Essay / Research Paper Abstract
This 3 page paper is written n two parts. The first part looks at NUMMI (New United Motor Manufacturing Inc., a strategy alliance between Toyota and GM, and looks at the way in which the firm managed stock, keeping it to a minimum and the way in which supplier relationships were managed to achieve this. The second part of the paper then looks at the importance of planning scheduling and logistics in just in time management systems. The bibliography cites 2 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TENUMMI1.doc
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Unformatted sample text from the term paper:
The practices were heavily influenced by the Japanese firm Toyota, who were a joint venture partner in the firm with General Motors (Adler et al, 1997). The firm sought
to operate in an efficient manner and many of the practices Toyota used to reduce costs in Japan were transferred, but had to be adapted due to some difficulties in
implementation in the way the core elements of their inventory management took place; long term relationships with suppliers and the just in time management system were implemented. The
just in time management system is one the inventory required for production will arrive just in time to be used, often within only a few hours. This has a
significant impact on inventory costs as it almost eliminates a large amount of capital tied up in stock. To develop a just in time inventory system NUMMI had to work
closely with their suppliers, this means sharing knowledge regarding their demand which requires a high level of trust (Adler et al, 1997). If this is not in place the supplier
might not have the stock needed to supply the firm. The relationship also sees communication from the supplier to the firm, where they are expected to tell NUMMI at an
early stage if there is a production problem (Adler et al, 1997). NUMMI will even send out a specialist to help the firm. In a just in time environment this
can lead to production delays as there is not a buffer held in stock. By sharing information with the supplier, NUMMI gave the suppliers the data needed for them
to manage their own production to meet the demand (Adler et al, 1997). In these environments it is not unusual for there to be confidentiality agreements in place which the
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