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.
The functions in the organization are diverse and require effective management that will ensure that the operations are well ordered. The utilization of the inventory system allows the organization to meet the needs of the customers, the company personnel and the shareholders. Through this an organization can be able to locate the needed resource to the correct company projects. The inventory system that is used in the organization is the largest asset that an organization can have due to the fact it determines the overall success of the organization (Broyles, 2005).
Description of the Inventory System:
The selected inventory system is called the Just in time Inventory system that used in the Toyota Company. It is based on the idea of having the needs of the company to be met at the exact time that they are needed. Through this system of management, the organization will be able reduce their losses by the effective planning that will enhance the value of the operations in the company. Costs in the organization are cut and the organization attains great company advantage. The Toyota Company which is a manufacturing organization has set out forecasted demands for their products. The organization has then put in place the just in time inventory system to ensure that the production levels of the meet the already forecasted demand.
When the company uses this inventory system, it will be able to purchase the required materials and utilize them to produce only the units that are needed in the demand market. The just in time inventory system has ...
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