Thank you for writing "The Japanese Must Be Laughing Now" (Insider, January). More than just the automotive industry is moving toward Just-in-Time (JIT) environments, however.The electronics industry and other technology-oriented manufacturing concerns are turning toward this philosophy. Most large original equipment manufacturers are engaging in blanket purchasing agreements with vendors to secure economy-of-scale pricing, yet waiving costly storage and labor costs associated with volume purchasing.

The midsize company has more to gain using JIT because, generally, it has a heavy sales backlog but very little cash to implement the backlog. An inventory package would aid the midsize business and even the small business.

Published on: Apr 1, 1986