Implementing just-in-time-based supply chain for the bulk items in an integrated steel plant Online publication date: Thu, 29-Oct-2020
by Ram Naresh Roy
International Journal of Intelligent Enterprise (IJIE), Vol. 7, No. 4, 2020
Abstract: Due to increasing global competition, organisations are continuously improving their operational practices and cost efficiency to get a competitive edge. This paper involves a case study in ABC Steel plant (anonymised) dealing with a huge amount of bulk-materials handling and transportation, and proposes a JIT-based model of handling and transporting which may lead to potential cost savings. The paper discusses the important requirements of JIT procurement and transportation through a literature review. The existing system of ABC Steel plant has been studied and modelled as a pull-system, and an MRP model has been used to calculate the amount of various raw materials needed for making the hot-iron or steel. The total costs of transporting bulk materials from various sources for steelmaking in the 'existing system (model 1)' and the 'proposed JIT system (model 2)' have been calculated. The differences between the two indicated the potential savings for different levels of safety-stock and different levels of JIT implementation.
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