Jit ( Jit ) Inventory System Essay

2008 Words Feb 23rd, 2016 9 Pages
The purpose of this paper is to discern the process of the Just in Time (JIT) inventory system in companies, as well as provide key examples of JIT. It is considered to be one of the best inventory management systems that there are. Due to the reliance that many companies have on JIT, it is important to realize the utilizations of the system and why it is commonly used. As well as, recognize potential weaknesses, and possible risk mitigation plans that companies can practice to avoid future problems with inventory management.
JIT Key Elements
We have all heard the phrase ‘Just-in -time’. ‘Just-in- time’ for dinner, ‘just-in-time’ for work, ‘just-in-time’ for the store shelf, wait…, what? Yes, ‘just-in-time’ is more than an everyday common phrase. It is actually an inventory management system just as last in, first out (LIFO) and first in, first out (FIFO) are other ways to manage inventory. The difference is a just- in-time (JIT) approach means exactly that, items arrive just-in-time for sale or manufacturing. There isn’t a warehouse somewhere full of inventory waiting to be ordered. Instead this system is focused on eliminating non-value added activities and is always focused on seeking quality improvement. In addition, it is important to note that this inventory management system was aimed at replacing the Just In Case approach to managing inventory. The Just In Case approach was just the opposite; it carried large inventories, required massive storage and waste was…

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