Overview of dell - Overview of Just-in-Time Inventory...

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Overview of Just-in-Time Inventory Management Just-in-time is a movement and idea that has gained wide acceptance in the business community over the past decade. As companies became more and more competitive, firms were forced to find innovative ways to cut costs and compete. The idea behind JIT, is to have the supplies a firm needs at the exact moment that they are needed. In order to accomplish this goal a firm must constantly be seeking ways to reduce waste and enhance value. It is also a key component of JIT strategy. There are several activities that a company must monitor as targets for reducing waste. Among these are, excessive waste times, inflated inventories, unneeded people or material movement, unnecessary processing steps, numerous variabilities throughout a firm's activities and any other non-value adding activity When Companies use Just in Time (JIT) manufacturing and inventory control system, they purchase materials and produce units only as needed to meet actual customers demand. In this system inventories are reduced to the minimum and in some cases are zero. Under ideal conditions a company operating at JIT manufacturing system would purchase only enough materials each day to meet that days needs. Moreover, the company would have no goods still in process at the end of the day, and all goods completed during the day would have been shipped immediately to customers. As this sequence suggests, "just-in-time" means that raw materials are received just in time to go into production, manufacturing parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers. JIT makes production operations more efficient, cost effective and customer responsive. JIT allows manufacturers to purchase and receive components just before they're needed on the assembly line, thus relieving manufacturers of the cost and burden of housing and managing idle parts. Just In Time appeals to
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This note was uploaded on 03/08/2011 for the course ECON 422 taught by Professor Dr.shafiqurrehman during the Spring '11 term at University of Karachi.

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Overview of dell - Overview of Just-in-Time Inventory...

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