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Impact of Just-In-Time manufacturing on profit maximization

Author

Listed:
  • Abdullah, Hariem
  • Aziz, Hemn

Abstract

Just-in-time (JIT) manufacturing is a production system in which products are produced to meet demand on time. The companies benefits to hold no inventories, meaning possessing zero inventories. But, the requirements of applying JIT strategy are several to be challenging for developing countries. However, it is argued that the advantages of implementing JIT, such as the lower warehouse costs, better supply chain management and less waste are very worthy in order to down product cost and improve its quality towards the industrial organizations profit maximization and their position in the markets. Given the importance of the foregoing, the current study tried to investigate the extant of the implementation of JIT production strategy by small companies in Kurdistan region of Iraq and its impacts on profit maximization. To achieve this end, the quantitative method for data collection in the framework of the case study was chosen. This has been through the use of a questionnaire survey that has already been tested. The results of the study revealed that at Kurdistan regions’ small manufacturing firms can take advantages better of JIT implementation through overcome the difficulties like the lack of providing raw materials at any needed time without having to keep stock. this is in order to decreasing product cost and increasing its quality towards maximizing their profits and position in the markets.

Suggested Citation

  • Abdullah, Hariem & Aziz, Hemn, 2017. "Impact of Just-In-Time manufacturing on profit maximization," MPRA Paper 112365, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:112365
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    File URL: https://mpra.ub.uni-muenchen.de/112365/1/MPRA_paper_112365.pdf
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    References listed on IDEAS

    as
    1. Vedran Capkun & Ari-Pekka Hameri & Lawrence A. Weiss, 2009. "On the relationship between inventory and financial performance in manufacturing companies," Post-Print hal-00493163, HAL.
    2. Richard E. White & John N. Pearson & Jeffrey R. Wilson, 1999. "JIT Manufacturing: A Survey of Implementations in Small and Large U.S. Manufacturers," Management Science, INFORMS, vol. 45(1), pages 1-15, January.
    3. Vedran Capkun & Ari-Pekka Hameri & Lawrence A. Weiss, 2009. "On the relationship between inventory and financial performance in manufacturing companies," Post-Print hal-00466392, HAL.
    4. Bivin, David G., 2003. "Firm performance under just-in-time and traditional proxies for profit maximization," International Journal of Production Economics, Elsevier, vol. 81(1), pages 141-152, January.
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    Citations

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    Cited by:

    1. Star, Miran, 2022. "Board of Director Characteristics and Firm Performance for firms listed on Iraq Stock Exchange," MPRA Paper 114396, University Library of Munich, Germany.
    2. Abdullah, Hariem, 2021. "Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms," MPRA Paper 112134, University Library of Munich, Germany.
    3. Qadir, Diary, 2022. "Effect of Research and Development on Firm Value: Cross-country Evidence from the Technological Sector," MPRA Paper 114596, University Library of Munich, Germany.

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    More about this item

    Keywords

    JIT; small-size manufacturing firms; product cost; product quality; and profit maximization;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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