An evaluation of the impact of just in time (JIT) strategies on cut, make and trim (CMT) customers and suppliers within the apparel supply chain

Partington, RS

Abstract

The thesis evaluates the impact of just-in-time (JIT) strategies on retailers and cut make
and trim (CMT) manufacturers within the apparel supply chain. A simulation approach
is adopted based on a case study within the apparel sector, involving a major high street
retailer and a manufacturing supply chain.
A range of procurement strategies are subsequently modelled (including manufacturing
resource planning [MRPII], safety stock [SS]. ship to forecast [STF] and JIT) within
manufacturers of differing scale, and varying levels of dependence on primary
customers (major high street retail chains) and impact on the variation of demand against
forecast are evaluated against a wide range of parameters; these include: net margin,
delivery, manufacturing profit and impact on a manufacturing company's ability to
satisfy its secondary customers (smaller retail outlets with less buying power).
Analytical methods are used to evaluate performance measures within three
perspectives: Primary and Secondary customers, and Suppliers (manufacturers). A
further perspective is evaluated combining all three views.
Findings indicate that JIT retail strategies, notably where power of the retailer is high
and the power of the manufacturer is low (compared to the raw material supplier),
necessitate inventory holding and biased work scheduling at a supply level, leading to
reduced manufacturing margin and loss of secondary customers; the latter imposes
hidden costs in attracting new custom, which is not evaluated in this thesis.
The thesis concludes by comparing the variation of parameters across each of the four
perspectives, and proposes recommendations for conventional JIT policy, based upon
optimising benefits for all parties within the supply chain.

Citation

Partington, R. An evaluation of the impact of just in time (JIT) strategies on cut, make and trim (CMT) customers and suppliers within the apparel supply chain. (Thesis). Salford : University of Salford

• Thesis Type: Thesis
• Deposit Date: Oct 3, 2012
• Additional Information: Additional Information : Vol.1
• Award Date: Jan 1, 2011