Abstract
This paper analyses the technical productive efficiency effects of implementing just-in-time purchasing (JITP) techniques in the US manufacturing industry. The impact of JITP techniques on technical efficiency is modelled using a stochastic frontier production function that explicitly accounts for JITP-induced efficiency effects. The empirical results suggest that characteristics internal to the organization, such as top management commitment to implementing JITP, are related to higher productive efficiency. External characteristics, such as supplier value-added, or transportation issues, do not appear to be associated with increasing productive efficiency.
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