ABSTRACT
Just in Time (JIT) concepts are believed to overcome the problems, particularly those concerned with inventory. Since there are three main factors that affects inventory i.e. lead time, batch size and volatility of demand, JIT implementation reduce these factors by reducing lead times and batch size as well as stabilizing demand. Shorter lead time results in quicker response to rapid changing demand as well as lower inventory. Smaller batch sizes can cause smoother production flow, resulting in shorter lead time as well as lower inventory. Finally, more stable demand requires less buffer stocks as well as providing smoother production flow. In this work, a tablet drug item (blend) was selected as a trial or a pilot project. This research equally developed a discrete event simulation model to study Just-In-Time Supply Delivery System (JSS). The connections between JSS and manufacturing system under real time operations are studied. The study identifies interesting inventory dynamics and factors that contribute to this behaviour. Results from the work reveal that although the overall defective rate in each item is around 5%, the Drug Process Plant is still expected to improve its quality performance because in the JIT system, reducing variability of the defects is also far more important rather than just reducing the percentage of defects.
