A type of common cost where products are produced in fixed
proportions, and the cost incurred to produce on product
necessarily entails the production of another; the backhaul is
A rate over a route that involves two or more carriers to
transport the shipment.
Joint Supplier Agreement
Indicative of Stage 3 Sourcing Practices, the Joint
Supplier Agreement includes terms & conditions, objectives
,process flows, performance targets, flexibility, balancing
An inventory control system that controls material flow
into assembly and
manufacturing plants by coordinating demand and supply to the
point where desired materials arrive "just in time" for use.
An inventory reduction strategy that feeds production lines
with products delivered "just in time”. Developed by the auto
industry, it refers to shipping goods in smaller, more
frequent lots and helps in reducing waste and recycling time.
Operationally, JIT minimizes inventory at all the locations.
Just-in-Time II (JIT II)
Vendor-managed operations taking place within a customer's
JIT II was popularized by the Bosche Corporation. The supplier
representative, called "inplants," place orders to their own
companies, relieving the customer's buyers from this task.
Many also become involved at a deeper level, such as
participating in new product development projects,
manufacturing planning (concurrent planning)