Clement Goh Jia Yang

2020059023

IET

Questions

1. List the actions that Smog Co．took to respond to the new demands being placed on it by
customers．Group your responses under the headings of stock levels，level of expediting
and storage space．Briefly describe the effects that these actions had on production
performance.
a. Increase stock levels
i. This method had worked before when catering to unexpected demands.
b. Overtime to maintain stocks
i. The increase in stocks led to overwhelming amounts of goods to be
expedited through the factory causing an increase in overtime for the
workers and machines in order to maintain the output of the goods.
c. Higher level of Inventory
i. The higher level of inventory meant that it was harder to detect goods that
are not up to the standard of the company. Thus, having a higher chance of
defective goods being shipped out to the customers. Higher level of
inventory also meant that more storage space is needed to order to satisfy
the amount of goods.
2. Use the ‘Pyramid of key factors that underpin JIT’ to describe the factors that caused these
actions to affect the company’s ability to respond to the demands being placed on it by
customers．
a. JIT (Just in time) is an inventory management system in which a raw material
supplier can use to minimized the loss of the company and save time on a long run.
However, JIT only provides the amount of goods that are needed. When a change in
demands occurs, it will heavily disrupt the entire system. When companies demand
a shorter downtime, the suppliers are forced to increase stock output to order to
meet the demand in a short amount of time while at the same time requesting a
decrease in cost. JIT requires precise planning in order to work and is unable to
adapt to newer demands in a shorter notice.