Estimation of economic efficiency the «just in sequence» deliveries

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MAGAZINE №2 (73) April 2016

AUTHORS

KUZIN D.A. - Candidate of Technical Sciences, Associate Professor, Department of Production Management
and Logistics, National Research University Higher School of Economics (Nizny Novgorod, Russia)

KIRIENKO A.S. - National Research University Higher School of Economics (Nizny Novgorod, Russia)

CATEGORY  Logistics production Corporate logistics industrial companies Modern concepts and technologies in logistics and supply chain management  

ABSTRACT

The article discusses the features of the practical implementation of the concept of supply «just in sequence» (JIS). Relevance of the topic due to the need to improve the traditional methods of supply in connection with the expansion of the range of consumer preferences in the highly competitive market and the need to reduce logistics costs. The general principles and the practical results of the implementation of JIS-deliveries on the example of automobile plants are given. The formulas to calculate the costs per unit of JIS-deliveries are given. The analysis of the JIS-deliveries economic efficiency compared to deliveries «just in time» (JIT) is made. The findings suggest that the compact arrangement of products supplied to the JIS-carts, and their turnover can reduce the cost per unit of delivered products several times. In addition, the application of the concept of JIS-deliveries brings significant economic advantages as a result of logistics «pull» techniques and lean production that can reduce buffer zones for storage of semi-finished products and reduce storage areas for delivered products. According to the criterion of logistics costs per unit of output, investigated the optimal scope of JIS – deliveries depending on transport distances. The study showed that the JIS-deliveries over short distances (up to 10km) are more beneficial than those deliveries over long distances.
The reasons of reducing the effectiveness of the JIS – deliveries over long distances are given as a result of violation of the principle of «through-load unit.» Practical recommendations are given for the broad implementation and improvement of economic efficiency of JIS-deliveries; the requirements to unified information system are formulated.

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