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The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached

Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.

As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,

JIT is a manufacturing management method developed in Japan during the 70's to meet customer demands. The individual most credited with the development of JIT is Taiichi Ohno, the vice president of Toyota

The Just In Time Philosophy (JIT) is simply to eliminate waste, by cutting excess capacity or inventory and removing any activities that do not create value (Krajewski, Ritzman, Malhotra, 2013). As mentioned in the introduction, there are certain items that need to be gotten under control in order to run a neat, lean system. The goals of a lean system are to eliminate eight types of waste (overproduction, inappropriate processing,

The just-in-time (JIT) inventory management is the process of ordering and receiving inventory for production and customer sales only as it is needed and not before. This means that the company does not hold safety stock and operates with low inventory levels. This strategy helps companies lower their inventory carrying costs by increasing efficiency and decreasing waste. Waste is anything that does not add value.

Moreover, JIT accounting can be the best way for smaller companies especially for those who don’t have the funds available to purchase bulks of stock at once. Ordering stock when it’s needed can helps to maintain a healthy cash flow. Companies that have implemented JIT purchasing techniques have substantially reduced their investment in raw material and work in progress

Other advantages are the improvements in delivery promises met, product design and productivity. Besides, eliminating the administrative burdens and the delivery lead time are also the essential benefits when incorporating the model in the production and delivery processes (Turnbull, 1988).According the comments of Romero (1991) that stated that the benefits in applying the JIT purchasing model in manufacturing are greatly gained and kept over a long time with relatively little investments, such as time, money and staff efforts

JIT able reduce the storage space to store goods and allow organization to reduce the risk to invest in unnecessary stock. Besides, it is suitable for those smaller organization that have limited funds as they can only ordering stock when it is needed (Barlow, 2016). However, there are some notable limitation of JIT system in inventory management.

Just in time (JIT) is a production strategy that strives to improve business efficiency and decrease waste by receiving goods that only needed in production process, thereby reducing inventory costs. JIT is a long term approach to process improvement which defines how inventory is viewed and how it relates to management. The philosophy of JIT is storage of unused inventory is a waste of resources and advocated inventory should come at the right time, in the right place and in the exact amount. It helps organization to expose the hidden costs of inventory, eliminate inventory that does not compensate for manufacturing process issues and constantly improve processes to require less inventory.

"A budget is a plan." More specifically, a budget is a plan of action matched by resources required to implement the plan. Budgets generally divide between two broad categories: the operating budget, sometimes known as the "expense" budget and the capital budget. Budget in simple word means a sum of money allocated for a particular purpose. Budget is there in everyone's life, it may be a small or a big one. Budget is a tool which helps in controlling and planning the functions of an organization. It is formalized statements of the goals of an organization stated in financial terms and accomplishes several important functions for managers. It states future projections of revenues, expenses and expected

The first key to JIT success is human involvement which includes stockholders, owners of the company, labor organization, suppliers and Government support. JIT creates the idea of involving all workers at different levels of the organization. This can be achieved by motivation, communication, encouragement to

The traditional method of computer manufacturing was to pre-assemble computers, store them and release them to retailers for distribution to the final customers (smallbusiness.chron.com). Dell’s direct sales approach changed all that by bypassing retailers and selling direct to the customers (Kapuscinski et al, 2004). The industry now uses just-in-time inventory, controlling the manufacturing and ordering of parts, to minimise costs. Although Dell was not the pioneer of Just-in-Time, JIT as a method of manufacturing and controlling wastages was established by Toyota, in the 1970s.

The design has some benefits including reducing the setup time, improving the goods flow from warehouse to shelves, efficient use of multiple skilled employees, synchronizing production schedule and work hour consistency with demand, regular interval supply through the production day and at last minimizing the storage space. Problems are also associated within the JIT system by leaving the suppliers and consumers open to supply shocks and demand changes and within raw material streaming by linking JIT through the entire supply system.

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.