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1970s/80s: Logistics management (materials requirement planning (MRP) and 

just-in-time – JIT)

The just‑in‑time philosophy (JIT) aims to make the process of raw materials acquisi‑

tion, production and distribution as efficient and flexible as possible in terms of mate‑

rial supply and customer service. Minimum order quantities and stock levels were 

sought by the customer and therefore manufacturers had to introduce flexible manu‑

facturing processes and systems that interfaced directly with the customer who could 

call an order directly against a prearranged schedule with a guarantee that it would be 

delivered on time. Materials requirement planning systems were important in maintain‑

ing resources at an optimal level. The design for manufacture technique was used 

Chapter 6  Supply chain management

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Part 2  Strategy and applications

to simplify the number of components required for manufacture. An associated phe‑

nomenon is lean production and lean supply where supply chain efficiency is aimed at 

eliminating waste and minimising inventory and work in progress.