Question: How would you respond to this post? Just in time (JIT) inventory management is a form of a lean manufacturing strategy for increased efficiency. JIT
How would you respond to this post?
Just in time (JIT) inventory management is a form of a lean manufacturing strategy for increased efficiency. JIT is an ordering process where the materials are received to manufacturing as they are needed for production (Vonderembse, & White, 2013). By operating under the JIT inventory management practices, the company operates with lower inventory levels and little or no safety stock. Lower inventory levels promote efficiency, lower costs, and less waste. Companies that use JIT process in real time and only produce products which have been planned and ordered by customers. JIT inventory management can be used by large or small companies to provide products with excess waste and improve the process flow. JIT works best for industries with strong economies of scale and even stronger leverage with multiple suppliers supporting their industry. This is why it works so well for manufacturing-based businesses. JIT inventory practices would not be appropriate for smaller scale service-based companies that cannot predict customer orders or forecast plan easily. These companies many include a consulting business, auto dealerships, and bakeries. Some other companies that may not fair well with JIT inventory are companies that are seasonal in nature. Companies such as tax services, lawn services, and florists cannot always predict business levels from previous data due to seasonal changes and unforeseen circumstances. These companies have in common that they are cyclical and the demand for product is not regular in nature.
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