Inventory Management Practices
Approx. Words: 2,700 - Pages: 12 Add to cart Price $131.40
...system of inventory outsourcing. JIT is a ëíflexible manufacturing system which enables manufacturers to simultaneously reduce manufacturing costs, improve product quality and quicken the pace of both products and process innovation.íí (Reid 345) This is accomplished by reducing the inventory of goods which are stored at the point of origin. Goods and supplies are delivered frequently and in small amounts to the point of production where they are needed. (Reid 345) Information exchange between partners in the system is crucial. Since a JIT network encourages members to share both key design and engineering information in order to facilitate the system, product quality is enhanced. (Reid) This further reduces costs by cutting down on those costs associated with warranties and repair. (Reid 345) Because JIT can help provide ontime delivery of all material necessary for job or product, it makes it easier to control inventory. (110) Smaller inventory means itís easier to guard against loss, and prevent having a surplus inventory that goes obsolete before it can be sold. JIT allows a manufacturer to keep the cost of...
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