Just In Time Case Study
Just-in-time (JIT) is an inventory strategy of companies to increases the efficiency and decrease the waste by receiving goods only when there are needed for the production process. Thereby, the company can reduce inventory costs. The producers are required to forecast demand accurately in this method. The Just in Time (JIT) allows the movement of the products or materials to a specific location at the required time, just before the production process. The technique works when each operation is closely synchronized with the subsequent ones to make that operation possible. JIT is a method of inventory control that brings material into the production process, warehouse or to the customer just in time to be used. Therefore, the excessive level of storing of materials in the warehouse is reduced.
In terms of cost saving methodology, the Just In Time method of manufacturing and inventory control helps to reduce the amount of inventory throughout the supply chain and the cost is reduced and saved. Furthermore, in order to execute Just In Time correctly, the company has to be accurate in forecasting the customer demand, rather than just synchronizing the operation within manufacturing or supply chain process. Just-in-time (JIT) goal is to time-phase …show more content…
JIT is a system that gets rid of some supplying, storing and securing activities that were needed for manufacturing to save time and reduce the cost. It should be seen as a total materials management theory. JIT covers suppliers, customers and also manufacturers. Besides, business firms are concentrating more on the needs of customers and seeking ways to reduce costs, improve quality and meet the ever-rising expectation of their customers. To these ends, many of them have identified logistics as an area to build cost and service
In terms of cost saving methodology, the Just In Time method of manufacturing and inventory control helps to reduce the amount of inventory throughout the supply chain and the cost is reduced and saved. Furthermore, in order to execute Just In Time correctly, the company has to be accurate in forecasting the customer demand, rather than just synchronizing the operation within manufacturing or supply chain process. Just-in-time (JIT) goal is to time-phase …show more content…
JIT is a system that gets rid of some supplying, storing and securing activities that were needed for manufacturing to save time and reduce the cost. It should be seen as a total materials management theory. JIT covers suppliers, customers and also manufacturers. Besides, business firms are concentrating more on the needs of customers and seeking ways to reduce costs, improve quality and meet the ever-rising expectation of their customers. To these ends, many of them have identified logistics as an area to build cost and service