![]() ![]() This lack of inventory is exactly what makes JIT so great to companies in reducing costs, yet making it risky as well by in some cases not having enough buffer inventories to react and keep the supply chain moving. When a ship arriving from Asia full of supplies cannot make it to shore, the company using JIT generally has very little inventory to compensate for the emergency. “Adhering to the just-in-time concept can be expensive in times of emergency such as at ports” (Greenburg, 2002). Labor strikes, stock-outs, and port lockouts can quickly disrupt an entire supply chain while JIT processes are in place. Just-in-time inventory (JIT) is a production system designed to cut costs and optimize logistics by delivering and receiving materials and parts right when they are needed, never too early or late. JIT processes can be risky to certain businesses and vulnerable to the supply chain in situations such as labor strikes, interrupted supply lines, market demand fluctuations, stock-outs, lack of communication upstream and downstream in the supply chain, and unforeseen production interruptions. When it comes to inventory management, the just-in-time (JIT) inventory system is a technique that matches raw-material orders from suppliers directly with. Just-in-time manufacturing (JIT manufacturing) is a production model in which items are created to meet demand, not created in surplus or in advance of need. Just in Time is the inventory control system that seeks to process improvement, increase efficiency, and reduce waste. Because of this strong interdependence with JIT, a weakness in the supply chain caused by a JIT weakness can be very costly to all linked in the chain. Everyone relies on everybody else” (Greenberg, 2002). “In just-in-time, everything is very interdependent. Just in time (JIT) manufacturing is a workflow methodology aimed at reducing flow times within production systems, as well as response times from suppliers and to customers. Just-in-time or JIT is an inventory management strategy that encourages buying supplies only during order placement to minimize inventory costs. Just in Time, as a concept and process, was arguably created by Toyota in Japan during the 1970s. ![]() Just as JIT has many strong points, there are weaknesses as well. The History of JIT Inventory and Production. ![]()
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