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The JIT materials management system in developing countries

Author

Listed:
  • Gul Polat
  • David Arditi

Abstract

The just-in-time (JIT) approach to materials management appears to be superior to a just-in-case (JIC) approach in terms of reducing cost and improving productivity under most circumstances encountered in industrialized countries. However, is it truly more advantageous than the more commonly used approaches in developing countries? Contractors in developing countries may be compelled to keep excessive inventory under some circumstances to help manage uncertainty in the supply chain and production process, high inflation rates, available discounts on prices of large amounts of materials, and price cuts in case of early purchasing. This study presents a comparison of the JIT and JIC materials management systems in terms of total cost of inventory by means of a simulation model that makes use of actual data obtained from an ongoing trade centre project in Istanbul, Turkey. The study suggests that had the JIT system been used in the project in Istanbul the total cost of inventory would have been 4.4% higher than the total cost of inventory in the JIC system currently used.

Suggested Citation

  • Gul Polat & David Arditi, 2005. "The JIT materials management system in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 23(7), pages 697-712.
    • Handle: RePEc:taf:conmgt:v:23:y:2005:i:7:p:697-712
    DOI: 10.1080/01446190500041388
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    References listed on IDEAS

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    1. Low Sui Pheng & Mok Sze Hui, 1999. "The application of JIT philosophy to construction: a case study in site layout," Construction Management and Economics, Taylor & Francis Journals, vol. 17(5), pages 657-668.
    2. Andrew Agapiou & Roger Flanagan & George Norman & David Notman, 1998. "The changing role of builders merchants in the construction supply chain," Construction Management and Economics, Taylor & Francis Journals, vol. 16(3), pages 351-361.
    3. Eric Wong & George Norman, 1997. "Economic evaluation of materials planning systems for construction," Construction Management and Economics, Taylor & Francis Journals, vol. 15(1), pages 39-47.
    4. Low Sui Pheng & Stephanie Tan, 1998. "How 'just-in-time' wastages can be quantified: case study of a private condominium project," Construction Management and Economics, Taylor & Francis Journals, vol. 16(6), pages 621-635.
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    Cited by:

    1. Jahangirian, Mohsen & Eldabi, Tillal & Naseer, Aisha & Stergioulas, Lampros K. & Young, Terry, 2010. "Simulation in manufacturing and business: A review," European Journal of Operational Research, Elsevier, vol. 203(1), pages 1-13, May.
    2. Andreas C. Nearchou, 2018. "Multicriteria scheduling optimization using an elitist multiobjective population heuristic: the h-NSDE algorithm," Journal of Heuristics, Springer, vol. 24(6), pages 817-851, December.

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