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Just In Time inventory systems

Please describe what Just In Time inventory systems are, the Pros and Cons and factors that affect JIT Systems. Please provide at least 200 words and a reference.

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JIT:

A "pull" system, driven by actual demand. The goal is to produce or provide one part just-in-time for the next operation. Reduces stock inventories, but leaves no room for schedule error. As much a managerial philosophy as it is an inventory system.

source: strategicsourcing.navy.mil/reference_documents/defs.cfm

Just In Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs. The process is driven by a series of signals, or Kanban, that tell production processes to make the next part. Kanban are usually simple visual signals, such as the presence or absence of a part on a shelf. JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency when implemented correctly.

source: http://en.wikipedia.org/wiki/Just_In_Time

Pros:

Set up times are significantly reduced in the warehouse. Cutting down the set up time to be more productive will allow the company to improve their bottom line to look more efficient and focus time spend on other areas that may need improvement.
The flows of goods from warehouse to shelves are improved. Having employees focused on specific areas of the system will allow them to process goods faster instead of having them vulnerable to fatigue from doing too many jobs at once and simplifies the tasks at hand.
Employees who possess multi-skills are utilized more efficiently. Having employees trained to work on ...

Solution Summary

Please describe what Just In Time inventory systems are, the Pros and Cons and factors that affect JIT Systems.

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