JIT Inventory Helping manufactures | Smiley II, Reginald Keith Jerome
Bus 255 |

JIT Inventory Helping manufactures | Smiley II, Reginald Keith Jerome
Bus 255 |

Reginald Smiley II
Professor Thomasson
Bus 255
November 24, 2014
JIT Inventory Helping Manufactures
The globalization is forcing firms to be more careful about customer satisfaction and profit maximization. Logistics is one of the key tools that builds cost and service advantages to the firms. On the other hand, Just-in-Time (JIT) management approach, which is effective in the manufacturing sector in particular might be applied to the firms as a chance to achieve cost and service advantages through logistics. When the firms focus on the JIT for business processes but not products, the management principles of the JIT can be applied to logistics. JIT is an inventory management system based on placing smaller, more frequent, inventory orders. JIT can quickly reveal areas that need improvement, improve efficiency and productivity, free up additional workspace and free up more working capital. JIT inventory has helped manufactures be able to preserve parts flow so that inventories do not build up at any phase of the manufacturing process, allowing expeditious development and requiring active management of the production procedure.
Just-in-time (JIT) inventory refers to an inventory management system with objectives of having inventory readily available to meet demand, but not to a point of excess where you must stockpile extra products. Maintaining inventory takes time and has costs, which is what motivates companies to implement JIT programs. JIT was first developed within Toyota’s manufacturing operations by Taiichi Ohno in the 1970’s as a means of meeting customer demands with minimum delay. In its original form, it referred to the production of goods, assemblies, and subassemblies to meet