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How can an online custom order trigger just-in-time production?
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information system
A woman taking a driver's license test on a computer, an example of a government using an information system to provide services to citizens.
In the context of information systems, an online custom order triggers just-in-time (JIT) production through an integrated enterprise resource planning (ERP) system. This process, often referred to as mass customization, functions as follows:
- Order Initiation: When a customer submits a custom order over the Web, the ERP system automatically processes the request based on the customer’s specific requirements.1
- Supply Chain Coordination: The system communicates the order requirements to the firm’s warehouses and suppliers. This ensures that the necessary input materials are delivered precisely when needed for a batched custom production run, minimizing waste and warehousing costs.21
- Integrated Processing: Because the ERP system links various functional units—such as sales, production, and finance—the order simultaneously triggers updates to financial accounts, initiates delivery logistics, and begins the billing process.1
By automating these steps, the information system allows manufacturers to balance product demand with plant capacity, ensuring that production remains efficient and responsive to individual customer specifications.21