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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 71.07-1.4%Nov 6 3:59 PM EST
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To: hueyone who wrote (62111)10/23/2002 2:20:31 PM
From: Lizzie Tudor  Read Replies (1) of 77397
 
no, just in time is still around and important but it mostly pertains to finished goods.

If you are subcontracting to build stuff you need to go beyond jit because of the lead times in the design and production of the goods- once they are done, then jit kicks in as far as cisco is concerned but its not as relevant since they have to pay for the initial lot minimums anyway. And I would imagine there are volume pricing discounts etc.

Unfortunately for these router companies and other high tech manufacturing, the CMs are custom building to order- so theres one nail in JIT, and then the chip companies are building custom chips that pertain only to that specific router buit by that specific CM... another nail- and so forth.

I don't know too much about JIT, but you don't hear that buzzword too often reading line56 anymore! I think it is somewhat obsolete, apparently Apple did good work with JIT in the early 80s, it was a simple concept of managed inventory when the USA apparently had NO IDEA how to do this stuff and the japanese were killing us. The new supply chains are way beyond JIT for custom manufactured goods. Thats my sense- any JIT experts out there correct me if I'm wrong?
Lizzie
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