Ms. Marx, the purchasing agent for ESM Company has been dealing with placing orders for materials where the quantities have been developed using an EOQ model. Since the amount of each order is known as well as the timing of the order, her main tasks relate to finding a supplier who can get the material to the company on time and with the appropriate quality. The price paid can vary somewhat if she has to start dealing with a new supplier or the existing supplier raises the price.
The Company has been discussing the possibility of moving to a JIT purchasing system. Ms Marx has heard of JIT but does not know how it might impact her job.
Required: Explain briefly to Ms. Marx what a JIT purchasing system entails and its potential effect on her job.

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The Answer of Ms. Marx, the purchasing agent for ESM Company has been dealing with placing orders for materials where the quantities have been developed using an EOQ model. Since the amount of each order is known as well as the timing of the order, her main tasks relate to finding a supplier who can get the material to the company on time and with the appropriate quality. The price paid can vary somewhat if she has to start dealing with a new supplier or the existing supplier raises the price.
The Company has been discussing the possibility of moving to a JIT purchasing system. Ms Marx has heard of JIT but does not know how it might impact her job.
Required: Explain briefly to Ms. Marx what a JIT purchasing system entails and its potential effect on her job.

Ms Marx, the Purchasing Agent for ESM Company Has Been