THE MAIN DIFFERENCE BETWEEN CHARACTERISTICS OF INVENTORY MANAGEMENT WITHIN…show more content… The main ones are discussed below.
Foremost, given that this system does not require a lot of buffer inventories this is translated into space required being significantly reduced. In addition to reduced space requirement, inventory investment in terms of purced parts, raw materials, W.I.P. and finished is as well reduced.
JIT system make use of the Assembly-to-Order, this concept results into reduced lead times in manufacturing. From the same argument, it can be said that it also leads to higher labour productivity especially those in clerical section, indirect support staff and direct labour as the system does not use the make-to-order concept which may mean other members of staff being underutilized. In JIT systems, given that employees are quality inspectors of their own work, it simply mean that facility usage will be increased and as a result there is high levels of employee engagement and involvement. Because of this quality of products will be significantly
