TLMT 441 Week 2.docx - Financial Decision Balance time and...

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Financial Decision: Balance time and costs Supply Chain management is executed through various principles which enable companies to balance time and costs. One such approach is the Just-In-Time (JIT) approach. The primary element of just in time approach is to have the right amount of inventory which is available to fulfill the demand of the production process and consumer demand. It can include both raw materials and the finished goods. This concept can give a competitive advantage to a particular industry. This makes the production operations more efficient and profitable. The process allows the company to be more responsive to the customer. Through this, the company has less capital which is blocked in the inventory and raw materials. Holding less capital leads to minimum obsolescence to be written off. This further allows optimization of logistics and transportation which leads to cost savings. For having a just-in-time approach, there needs to be the proper design of the process

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