JUST IN TIME

Just in Time Inventory

Table of Contents

Introduction1

Comparative Analysis2

Advantages of JIT System2

Disadvantages of JIT System3

Conclusion3

References4

Introduction

The above topic relates to Just-in-time inventory management system and comparative analysis regarding advantages and disadvantages.

Just in time is an inventory management system that works on the pull system. This means that companies decide to manufacture a product according to the demand. Based on the pull system, companies produce only that what is required.

Just-in-time is an idea of manufacturing coined by the Japanese in the year 1970. Just-in-time focuses on the inventory management. The Japanese automotive industry comprehensively adopted the just-in-time system to make their product more competitive by improving their product quality and corporate image. JIT is also related to lean manufacturing or lean production. By the 1990's, JIT system was expanded to private, government and non-profit organizations (Podolsky & Cheng, 1993).

JIT system is beneficial for all type of sectors. Before the invent of JIT system, societies used to store surplus crops to survive periods of food shortages, but these days, storing large amount of food would result in waste and inefficient food distribution. Managing inventory is also important for the food industry because of the un-preservative nature of food products (Bush & Trevino, 2011). This not only enables crops to survive by cuts the cost, as well. Just in time inventory management system requires continuous quality control and improvement. Continuous control is required in order to avoid potential problems in the system. It is imperative on the management to communicate the importance of JIT system and provide proper trainings related to the whole process.

Comparative Analysis

Advantages of JIT System

Just in time is a very efficient and effective way of inventory management. There are a number of benefits of JIT. In an organization, the need of JIT arises because of ...