The. Sgmdy Time Purchase Model Study

With the whole society progress, there is difference in people's consumption level, which cause automobile plant's JIT( just in time) procurement . Generally JIT means on-time delivery to the automobile assembly plant according to their required delivery date ,quantity and quality in order to satisfy their production demand. This essay starts from JIT procurement of auto-mobile assembly plant named SGMDY, introduces the definition , form, theory, purpose and significance of JIT procurement. SGMDY's supply chain system was set up based on JIT theory of Toyota Japan .JIT procurement is a highly utilized and concentrated system. It is well organized by the flow of product, logistic and information .During the JIT procurement ,SGMDY improves the information system and optimizes the internal procedure according to the characteristic of auto-mobile product in the market by taking some measures like implementing the recycled pick-up ,5S management , subcontract of logistic service etc. JIT procurement can shorten the delivery lead time of the supplier , simplify the material movement procedure, extend the shelf life of the auto-mobile spare parts ,lower the inventory of the spare parts and the occupation of funds . JIT procurement lowers the transportation and storage cost , strengthens the core competition of SGMDY .