Final answer:
Yes, just in time deliveries can help reduce storing/inventory costs for companies. Implementing just in time deliveries requires stronger control over truck location and timing. Turnover lead time is fast in just in time deliveries. Computer networks are often required. Delivery frequency may be more frequent and smaller.
Step-by-step explanation:
Yes, just in time deliveries can help reduce storing/inventory costs for companies. With this approach, companies receive deliveries of materials or products just in time for production or customer orders, minimizing the need for large inventories and the associated costs of storing and managing them.
However, implementing just in time deliveries often requires companies to have stronger control over the timing and location of trucks to ensure that deliveries reach customers on time. This may involve using advanced tracking systems, coordination with suppliers, and efficient logistics operations.
The turnover lead time from order to delivery is typically fast in just in time deliveries. Companies aim to fulfill orders quickly to minimize the time items spend in inventory and improve responsiveness to customer demands.
Computer networks are often required for just in time deliveries as they enable real-time communication and coordination between suppliers, manufacturers, and customers. These networks facilitate efficient order processing, inventory management, and tracking of shipments.
Regarding delivery frequency, just in time deliveries may involve more frequent and smaller deliveries compared to traditional inventory systems. This allows companies to maintain lower inventory levels and react quickly to changing demand.