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How Does Adopting a JIT System Affect the Firm's Relationship

question 93

Essay

How does adopting a JIT system affect the firm's relationship with suppliers and how must suppliers change their way of doing business?


Definitions:

Marginal Revenue Product Curve

A curve showing the additional revenue generated by employing one more unit of a resource, assuming all other factors are constant.

Marginal Revenue Product

The increase in revenue resulting from the utilization of one more resource unit.

Wage Rate

The amount of compensation paid to employees per unit of time worked, often expressed per hour or year.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a particular input, assuming all other inputs remain constant.

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