Thread: Cell Phone - Oneplus One - Invite?

The "invite" trick might also be because the company doesn't have enough money to pay for large scale mass production. "Invites" means that they only have to order from the Chinese manufacturers phones for people who really want one. 'Just in time' production, perhaps.





Just in time' production
Just in time is a ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum.

Advantages of JIT

• Lower stock holding means a reduction in storage space which saves rent and insurance costs
• As stock is only obtained when it is needed, less working capital is tied up in stock
• There is less likelihood of stock perishing, becoming obsolete or out of date
• Avoids the build-up of unsold finished product that can occur with sudden changes in demand
• Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Disadvantages of JIT

• There is little room for mistakes as minimal stock is kept for re-working faulty product
• Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed
• There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders – however, JIT is a very responsive method of production

http://www.tutor2u.net/business/prod...t-in-time.html