Better supply chain management the jit inventory

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Better Supply Chain Management: The JIT inventory design assists organization to become skilled and aggressive with how they utilize their supply chain. The more dynamic an organization supply chain will inevitably lead to decreased expenditure throughout the entire manufacturing operation and these decreased costs are then delivered to the consumer. Lower product costs often lead to more economical and quality products which directly effects an increased market share above the competition (Conrad, n.d.). Better Customer Satisfaction: Putting JIT into action supports organization to present their clients and customers with quality products more efficiently while remaining affordable. Organizations that have mastered JIT have more oversight on the complete manufacturing process, making execution effortless when customers’ needs alter (Conrad, n.d.).
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Running head: Milestone One- Draft of Cost-Volume-Profit Analysis 10 Less Waste: Organizations utilizing traditional processes of inventory management often finish with excessive unsold merchandise which goes to waste. Inevitably the organization with excessive merchandise must mark down the merchandise leading to decreased gross margin/profit and the perception of value of the organization. JIT will mitigate waste and in turn benefit the consumer with rapid response time to customer needs (Conrade, n.d.). Recommendation for Inventory Management I would recommend material requirements planning (MRP), it is a production planning and inventory control system. An MRP incorporates input from production timetables from inventory and the bill of materials ( BOM ) to forecast purchasing and shipping timetables. There are three primary objectives of an MRP system: Strategy aides to provide relevant materials that are accessible for manufacturing and basic goods are accessible for consumers to prevent deficiencies MRP minimizes waste by keeping the smallest amount of goods and products in stock at all times MRP system aids in arrangements for manufacturing delivery lists and buying When a MRP system is performing at its full capacity it will lessen waste while avoiding deficiencies. A considerable hurdle is data integrity, a data fed system has to be precise or it could lead to potential production and stock inaccuracy ("What is material requirements planning (MRP)? - Definition from WhatIs.com", 2018). Benchmarking Benchmarking is the never-ending progress of analyzing one’s organizations performance against the competition. As long as benchmarks are utilized in an organizations standard, leaders will always know where to stand with being competitive in their environment. Utilizing
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Running head: Milestone One- Draft of Cost-Volume-Profit Analysis 11 benchmarks help organizations determine variances with specific items or metrics most important to their business.
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  • Spring '09
  • Prof.S
  • Cost Accounting, New Hampshire, Milestone One- Draft

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