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Global Economy in Crisis || Just-in-Time — for Chaos • ISA

Mount Equity Group Tokyo Japan > News > Markets > Global Economy in Crisis || Just-in-Time — for Chaos • ISA

Just-in-time production was a key part of the process of neoliberalism and globalization, as part of the drive to maximize profits. First used in Japan in the 1970s, it spread around the world and beyond manufacture to almost every facet of capitalist economics and management systems.

The core idea is that manufacturers do not hold supplies of parts and raw materials. Instead, these are delivered just in time for when they are to be used. This saves the costs of storage — the land and building for a warehouse and the cataloguing and management of the stored materials.

However, the system requires many components. It needs reliable suppliers and logistics so that the materials do arrive on time and in the amount required. It needs accurate monitoring of the stocks on hand, so no component runs out. It relies on a predictable or accurate knowledge of demand so that the right components are available to meet that demand….

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