Inventory And Just In Time Management System
Inventory Management and Just-in-Time Systems
Strategically, purchasing management department must manage the overall supply chain efficiently and effectively. Reducing levels of stock in manufacturing is an internal and external matter (relationships with suppliers). Production demands and the management of supplies are linked strategically and operationally. International competition and lessons from Japanese practice have encouraged the adoption of just-in-time methods and quality management methods. Technological advances too have had an impact on inventory management. New mechanical and automated equipment has made stock movement more efficient with better use of warehousing controls. IT-based stock control systems with bar coding are integrated with other systems to give better control over order assembly, stock availability and monitoring.
Essential Aspects of Just in Time
Reduction and minimization of inventory in supply chains. Lessons have been learned from Japanese methods where substantial efficiencies are gained from frequent deliveries of small quantities to meet immediate demands. This compares with methods of stock control such as the calculation of economic order quantities, or usage, safety stocks, average stock, carrying costs, ordering costs. The application of Kanban – a “pull” system of production/materials control. An employee participation and involvement strategy
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