Just in Time Inventory Management and Production Planning.
Just in Time Inventory Management and Production Planning: Just in Time (JIT) inventory management has its benefits and setbacks that lead to the question on its eligibility to be adopted in organizations. It has some of the benefits of being cost effective and ensuring quality production.
However, it faces unpredictability in both the manufactured products and supplies one of the setbacks realized in adopting it. The magnitude of both the benefits and setbacks can vary depending on the industry.
The current study provides details on the advantages and disadvantages of employing the policy in the car manufacturing industry. The policy was pioneered by Toyota, and later by used by other organizations such as Ford. The two organizations have benefited substantially from the policy.
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and it has further facilitated checking in the entire system to assure quality. The prior aim of any business is to ensure that profit is maximized and customers are fully satisfied.
The two objectives facilitate sustainability. JIT inventory management has been identified to lead to the achievement of the objectives by being cost and time effective as well as by ensuring that quality is guaranteed in each of the stages in the manufacturing process.
Toyota and Ford have successively used the process, and the benefits are clear from the progress of the companies. As a result, it can be concluded that the JIT policy is a policy that is recommendable to other organizations in the industry.
Accounting Tools. (2013). The advantages and disadvantages of just-in-time inventory.
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