Define level capacity strategy verses just in time system, Operation Management

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Define why a level capacity strategy could be complicated to adopt for an organisation operating a just in time system?

Level capacity strategy

Along with a level capacity strategy of inventory management the organisation produces at a constant output avoiding any changes within demand. It frequently means stockpiling for a manufacturer or superior holdings of stock when demand levels decrease.

Just in time

JIT needs that products must only be produced when there is an internal or external client waiting for them. This aims ideally for zero stock as an example; raw materials delivered instantly at the time they are required, no build up of work-into-progress throughout production and finished goods only produced when there is a customer waiting for them for example, a chase management strategy.

Contrast

The two principles do not support one other since the former includes stock piling which conflicts along with the latter are aim of zero stock.


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