The Impact Of Just In Time On Firm Performance

Abstract

This paper explores whether different supply chain management choices such as just-in-time and non-just-in-time, which has different inventory cost has an effect on firm performance and whether or not the firm adopts the innovation approach such as JIT could increase productivity, reduce inventory and improve quality. The results indicated statistically significant differences in inventory, days to sell inventory, inventory turnover, ROA, sales, cost of goods sold, gross profit margin between JIT and non-JIT. It concluded that the adoption and implementation of innovation approach of supply chain management such as JIT did have a significant difference and improvement on firm performance.