Just in Time Inventory

Just-in-Time Systems

Sandra Orozco

Operations Management

MGT 560

January 24, 2011

Michael Yates

Table of Contents:

Introduction 1

Importance 2

Analysis 2

Synthesis/Integration 4

Trends 5

Challenges 6

Application 7

Work Cited/Reference 9

Introduction

Rapid change of the market’s needs is a major feature of the current world. This phenomenon has forced researchers and practitioners to develop new production management techniques to cope with the changes in the market place. Just-in-time (JIT) as a production management system is one of them. JIT is an inventory management philosophy that aims to reduce inventories by implementing systems and processes to supply a product or service exactly when it is needed, and how it is needed in the production process. The concept of JIT is widely accepted today by many American manufacturing companies, and it is a means of controlling costs through striving to maintain lean inventories – in fact, the concept of JIT was introduced in the early 1980’s to the U.S. as a concept known as “zero inventories.” This inventory control concept involves close relationships with vendors or suppliers who are able to provide components of the product direct to the work-in-process area in a “pull” type fashion whereby the components are delivered immediately before they are required.

Since the introduction of the JIT concept, it has evolved to become a management philosophy that required a great corporate-wide commitment to do a process right the first time and to reduce non-value added activities in the manufacturing process. Because the concept largely centers on this element of focusing on the elimination of waste in the manufacturing process, the JIT concept emphasizes the need for the supplier and receiver of goods to never have to wait on each other. Ideally, the concept is beneficial to both supplier and manufacturer in this way because it allows...