Explain How JIT Works in Services

question 65

Essay

Explain how JIT works in services. After all, how does "small lot size" and "reduce setup cost" make sense in services?
Supply examples to support your work.

Recognize the importance of incorporating after-tax incremental cash flows in project evaluations.

Understand the necessity of including changes in net working capital in investment valuations.

Acknowledge the limitations of capital budgeting analyses due to the accuracy of future projections.

Grasp the significance of considering a project's impact on other business areas and the inclusion of opportunity costs and disposal proceeds in project evaluations.

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Definitions:

Divisional Structure

An organizational framework where operations are grouped based on divisions, where each division operates as a semi-autonomous unit with its own management.

Meganational Business

Enterprises operating in multiple countries around the globe, leveraging size and presence to maintain competitive advantage and influence international markets.

Divisional Structure

An organizational layout in which the company is divided into semi-autonomous units or divisions, each responsible for a particular business area or market segment.

Multidomestic Strategy

A strategy used by companies where they tailor their products or services to each country or market in which they operate, accommodating local preferences and conditions.