Jit ) : An Inventory Management Strategy Essay

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

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

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

Just In Time (JIT): A just in time approach maintains only required inventory in demand; it uses previous year’s statistics to dictate the amount of inventory to be kept on hand (Business.com). The benefits of a just in time approach are that it reduces inventory, shipping fees, depreciation, and doesn’t waste product.

William J. Stevenson, in Production/Operations Management, defines the term just-in-time manufacturing as “a repetitive production system in which processing and movement of material and goods occurs just as they are needed,usually in small batches” (Stevenson, 1996). However, just-in-time (JIT) is more than an inventory system. JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste (Ptak, 1997)

Just-in-time inventory management is a cost-cutting inventory management strategy that results to stock outs. It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line. Nissan benefited from this operation strategy, the method ensured there wouldn’t be an excess amount of inventory isn’t sitting in the warehouse. When properly adapted JIT manufacturing has the capacity to strengthen Nissan’s competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production. Despite the preceding advantages, there are a number of disadvantages associated with just-in-time inventory which could significantly impact the business. A supplier that does not deliver goods to the company exactly on time and in the correct amounts could seriously impact the production process. JIT means that you become extremely reliant on the consistency of your supply chain

Broyles, D., Beims, J., Franko, J., & Bergman, M. (2005, April). Academic Mind. Retrieved January 19, 2008, from http://www.academicmind.com/unpublishedpapers/business/operationsmanagement/2005-04-000aaf-just-in-time-inventory-management.html

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,

Oswego State University of New York is accountable to Central Administration for maintaining the campus Property Control System (PCS) and accomplishing all necessary procedures to perpetuate the system. It is the primary responsibility of the Inventory Control Coordinator to: 1. 2. 3. 4. 5. 6. Educate the campus departmental personnel in the inventory control requirements of the Property Control System. Enforce procedures within this agency that will provide for required equipment control and reporting. Transmit all PCS transaction information to Central Administration. Supervise and conduct annual inventory of equipment as required by Audit and Control. Establish record and reporting procedures that will serve to maintain the campus PCS. Maintain a liaison with campus departments to assure compliance with all Property Control System requirements.

Improved Customer Relations: Adopting the JIT model will allow for better servicing of our customers. Having greater control of the manufacturing process will make it easier to respond to our customers’ needs and any changes they may have or require.

Just-in-Time (JIT) is a manufacturing process that can be implemented into an existing Business to Business (B2B) infrastructure to provide a business with an efficient outflow of products to its consumer base. JIT correlates itself into many different areas and aspects of B2B processes such as coordinating with co-suppliers, establishing relationships and becoming a customer-centric value chain. Finding and collaborating with co-suppliers is a very important part in just in time because having co-suppliers takes a crucial part in how products and services will be produced and delivered on time.

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

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.

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.