Reduce storage costs by using just-in-time production methods

Abstract

Today, in order to increase competitiveness, manufacturers are trying to use competitive strategies including cost and time leadership in order to achieve superior performance under cost reduction and as a result to gain a larger market share. One of the ways to achieve the above objectives is to use the just-in-time issue of production. The purpose of this research is to study the effect of a just-in-time production system on reducing storage costs.

The aim of the research is applied, and the research method is survey-descriptive. The statistical community of the research consists of managers and employees of the warehousing department in Iraqi industrial and commercial companies. Because of unknowns, 384 subjects were selected using simple random sampling based on the Cochrane formula.

The data collection tools in this research are two questionnaires for just-in-time production, employee et al. (2013) and a questionnaire for Ag Bachalo and Abedi for warehouse management (2014).

Validity and reliability of the questionnaires, confirmed using convergent, divergent and Cronbach's alpha. To test the hypotheses, the structural equation method was used. The results showed that competitiveness and efficiency in production and saving time and materials have a positive and significant effect on reducing storage costs.