Just in time (JIT)
1. Assignment is to provide description of inventory system
2. Provide advantages and disadvantages
Just in Time (JIT) Inventory Control System
Inventory control systems are tools utilized by companies not only to minimize inventory costs but also to ensure that adequate amount of inventories are available when needed. The objective is for the company to meet production targets and ultimately, buyers' demand. As noted by Keown et al. (2002), JIT is more than just an inventory control system; it is a production and management system.
Under the JIT system, the company estimates the demand for the inventory and determines the period between the date an inventory is ordered and the date it is received. This is to ensure that inventory only reaches the company when needed or just in time that it is needed.
The just-in-time inventory control system basically aims to minimize, if not to totally eradicate inventory costs, inventory costs, particularly carrying costs. This is confirmed by an online source which noted that with a JIT inventory system, "The company does not hold safety stock and operates with low inventory levels. This strategy helps companies lower their inventory carrying ...
The following posting helps with problems involving inventory control.
Inventory System Summary with Advantages and Disadvantages
Research one inventory system used in an organization with which you are familiar.
Collect four years of inventory data from the organization.
Write a summary which includes:
Description of the inventory system.
Describe the advantages and disadvantages of the system.