1. Class - JIT replenishment ensures that items are delivered to the point of use shortly before they are needed in the correct quantity and helps to reduce storage costs. There is no inherent assumption about better quality associated with JIT and there may be risks if quality is poor. So, how does a firm realize an economic advantage by using this supply technique versus others you have read about?

2. As we discussed earlier, make or buy decisions can have a great impact on how a firm conducts operations. Likewise the choice to use organic transportation assets to move one's products (think Coca-Cola and the local and long-haul trucks you see bearing their logo) must be weighed against a third party carrier such as J.B. Hunt or Con-Way Inc. carrying your goods. What must a company consider when making such decisions? Explain your rationale for the choices you suggest.