Jit : An Inventory Strategy

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

Lastly, the just-in-time (JIT) approach is an operating philosophy that requires that all resources, including materials, personnel, and facilities, be acquired and used only as needed (Mazumder, 2007). The JIT approach works great for manufacturing companies because of their common classes of material that they use which are raw materials, work-in-process, and finished goods (Mazumber, 2007). According to JIT concept raw materials are received just in time to go into production, manufactured parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers (Mazumber, 2007). The

As a result of these benefits, the JIT system has been particularly effective for companies with a high customer demand on newly developed technologies such as computers. If the product is produced when required and as specified by the customer, this not only allows the customer to order exactly what they want with modern technology, but it also benefits the manufacturer who is guaranteed a return on the goods straight

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.

MacDonald’s follow “Just in Time” JIT system for managing inventory. They have the system of supplying products to customers as soon as order is taken, with no delay between placing the order and getting it in hand. (Diwan P.,

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.

In accomplishing this, the JIT lean production process will minimize use of facility space, materials and supplies, stocks, labor, capital and time. This, in turn, will reduce costs by increasing production efficiency and overall output.

Our book defines JIT as, “… a philosophy of operation that seeks to maximize efficiency and eliminate waste in any form”( Vonderembse 2013, Chapt 11.1). Perhaps one of the greatest functions of JIT is that it uncovers the problems in production by keeping minimal items available. With no pools of inventory the goal of JIT it to allow a smooth flow of production without any kinks or waste. Since using the JIT system Space Age has uncovered a problem with its key worker ED putting in to many hours due to a glitch in the production of part 3079.

JIT is aimed to achieve Zero Inventory which is a stage in JIT system in which a company keeps minimum amount of inventory in storage and simply order the stock when a customer places an order or the need is generated, thus receiving in a timely manner. This is to reduce all the waste by building up the inventories by carrying only the required stock in hand. Zero inventory is an important concept as it is a key capability of the operation department to reduce waste in the form of misused and untapped resources. Thus it is an ideal situation of not keeping extra stock in the warehouses.

JITD will cause product reduction and with therefore cause more shelf space to open up at the distributor that could potentially give way to a competitor.

My decision is to implement the Just-in-Time Distribution (JITD) to improve the supply chain effectiveness especially the order fulfillment of Barilla SpA.

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

The use of JIT will help the company increase their efficiency by cut down on wait time and processing, all of which will translate to increased productivity and hence profitability.

Just-In-Time inventory is the big thing right now in operations. JIT is a form of providing supplies for customers, as the name suggests, just in time. McDonald's is another example of a JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order. What used to be the case was McDonald's would pre-cook a batch of hamburgers and let them sit under heat lamps. They would keep them for as long as possible and eventually discard what couldn't be sold. The only way to get a fresh hamburger under the old system was to make a special order. Now, due to more sophisticated burger-making technology (including a record-breaking bun toaster), McDonald's is able

JIT is a management principle based on the idea of cycle time which sustains a follow of materials in a specified amount to predetermined stations. The essence of JIT manufacturing is the timely provision of materials, components and sub-assemblies as need arises in the manufacturing process (Daniel, Reitsperger, Morse, 2009, p. 3). This follow of materials is only moved when triggered by the requirement for the materials at the station farther along the production line (Starr, 2007). By