JIT manufacturing and inventory control system Essay

a. After analyzing Pro-Forma Income Statement for all four quarter the utilization of Just-in-time strategy in Quarter 2-3 would have made Lean in Enterprises for more profitable. Since the premise of Just-in-time is to reduce waste and make sure that the supply chain is working efficiently to meet the customer demand. Just-in-time inventory is the minimum inventory necessary to keep a perfect system running. In Operation Management Heizer and Render define JIT inventory as the exact amount of the good arrives at the moment it is needed. (p. 2010) The ability to implement this strategy in Quarter 2 and Quarter 3 would have been very beneficial to the company expenses. The Just-In-Time strategy would have help the company avoid the $8,163 holding cost an excess capacity cost of $491,524. Just-in-time strategy would have prevented additional production after the product had low customer demand. Just-in-time would have also prevented the same waste

Dell has achieved this by constructing Web pages for the suppliers. These pages allow the suppliers to view order for components they produce as well as how much stock is currently in inventory at Dell. This allows the supplies to build for demand in real time.

4) Exploring the possibility of implementing JIT (Just in Time) system that can reduce the finished goods inventory at

Businesses benefit from having a good relationship with their suppliers of raw materials and components. In manufacturing, companies are adopting “Just-in-time” manufacturing. This means that businesses only produce when they have an order, and they only get materials delivered when they are needed. Businesses require reliable and efficient suppliers to be able to order their stock last-minute.

The inventory and production departments also have issues. Currently, inventory is done by the receiving area supervisor confirming the shipping documents against incoming orders by hand. This allows for human error and is not a quick or efficient way to do inventory. The same process is used when production takes items from inventory. The inventory system is only updated once daily when new raw materials arrive and then again once daily from production when the raw material is used. The lack of tracking and checking in a timely manner leaves the organization’s processes at a higher risk of failure. The inventory system does not currently communicate with the sales or with the Finance and Accounting applications. This may lead to a

The Just in Time tools will be very handy to reduce inventory at our health care organization. Inventory is an important and noticeable asset in health care delivery system. Cost reductions can be attained by applying advanced inventory management systems that would cause in fewer inventories on hand although still fulfilling demand for

They can operate on a just in time method, when they get a constant understanding of demand. This way they can cut production costs, by only making what they need. They can also predict when they need more inventory to make sure that they never run out of stock for their customers to purchase.

In supply chain management there is a million in one ways a company can approach its warehouses, suppliers, and stores utilizing different strategies to ensure they are distributing the right amount of merchandise. Failure to deliver the right amount of merchandise at the right time could lead to the supply chain management losing tons of money over wrongly timed delivered items.

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Just-in-time delivery needs good collaboration with vendors of distribution services and of products. The distributor needs a continuity of demand and the chance to define routes, loads and schedules well ahead. By working toward longer-terms, higher-volume procurements with vendors, prices can be cut due to larger transport volume over a long period of time. Just-in-time delivery will cut down the operating costs if the business is substantial for the distribution partner. Just in time delivery needs more frequent deliveries from vendors however it does not voluntarily imply higher transportation costs.

Harley Davidson’s success with the implementation of JIT had a lot to do with the fact that when JIT was put into practice, process problems could no longer be hidden by costly inventory that helped to meet ship dates. The inefficiencies in the processes were quickly identified and solved.

Inventory levels are kept by the retailer is affected by the demand patterns of customers and supply relationships with distributors and producers, suppliers to the manufacturer, and so on. The supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to customers, regardless of whether those activities occur in the same company or in other companies. Retailers need to buy supplies on the basis of JIT only if the activity along the supply chain are planned, coordinated, and controlled.

According to [5], Just-in-Time (JIT) inventory management enables an organization to gain competitive advantage by not having a large or excessive amount of inventory in warehouse. The organization only needs to order the parts when they are actually needed and new materials are produced only when old materials have finished. One advantage of adopting this strategy is that there will be no excess of inventory that needs to be stored and hence the inventory levels will be reduced as well as the cost of carrying and storing goods. One major disadvantage of this is that the organization will expose it in the risk of ordering problems for example a supplier is not able to provide parts on time. The result of this is that the organization cannot fulfill the order and contributes to customer dissatisfaction.

The finance department will also monitor levels of lost and outdated inventory to make sure that the levels don’t become too high. They need to write off this inventory but has to make sure that it isn’t excessive. Finance people also monitor the counts or physical inventories in order to reconcile what is actually on hand with what has been recorded in the company’s records. The finance department does not manage the inventory personally but it does have to make sure that the people