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Just-in-time (JIT) Inventory Control

The case study question was:
How does just-in-time (JIT) inventory control help organizations become more lean?

In 300 words, this solution addresses how JIT is a strategy to ensure inventory does not create unwanted costs. With a tangible product, too much inventory may result in the risk of spoiling (such as with food products) or becoming obsolete quickly (as with electronics). In the same manner, employees can be considered inventory. Having too many people working without enough tasks to keep them all busy is also a waste of money.

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Just-in-time (JIT) inventory helps organizations become lean in a variety of ways: such as properly utilizing the resources needed to make the product and avoiding unnecessary overhead costs. For example, with a product that does not have an extended "shelf" life, over production can result in wasting the raw materials used in production. A bakery supplies gluten-free muffins and breakfast breads to several local cafes. In using JIT inventory, the bakery would require ...

Solution Summary

The strategy of just-in-time (JIT) inventory control helps an organization to operate efficiently, in a lean manner, by properly utilizing the resources it has - versus "mass production" which can create nothing more than costs. JIT is meant to control costs my producing the good or service in quantities that are in demand immediately from customers. This reduces the need to "store" products, or have too many employees "on shift" with nothing to do. This solution is 300 words and thoroughly explains how JIT produces a lean operational capacity.