Topical 24: Discuss the view that’ JUST IN TIME ‘ is the most effective way of managing the inventory of business
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Sir Aqeel
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Topical 24: Discuss the view that’ JUST IN TIME ‘ is the most effective way of managing the inventory of business
Discuss the view that’ JUST IN TIME ‘ is the most effective way of managing the inventory of business.[20]
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Abiha_hamid
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Re: Topical 24: Discuss the view that’ JUST IN TIME ‘ is the most effective way of managing the inventory of business
[DEF] JIT inventory means ordering inventory only when it is needed.
[KN] it helps minimise the need for large storage facilities since it is ordered when needed.
[AN] this reduces warehouse cost such as rent, maintenance etc.
[AN+] the saved up costs can be used for future operations thus improving profitability.
[KN2] JIT prevents excessive inventory from becoming outdated or not needed.
[AN] this can help business inventory from going to waste.
[AN+] also since inventory is ordered only when needed, the business can quickly adapt to the customer changes as well
[KN] however, JIT only relies with up to date coordination with the supplier, if not the production process can be slowed.
[AN] if there is any sudden change in the supply issue for example delay in delivering due to external factors like closure of roads, the business would not be able to meet customer demand on time.
[AN+] leading to customer dissatisfaction and bad reputation.
[SOL1] this problem can be overcome by business maintaining strong relationship with multiple reliable suppliers.
[2] secondly, using advanced technologies to know the accurate and exact demand of the customers so that business would not face the risk of lower inventory level.
[EF] dynamic market therefore customer preferences or market changes can happen any time
[2] changes in economic conditions such as recession or inflation can impact supplier stability and raw material costs.
[KN] it helps minimise the need for large storage facilities since it is ordered when needed.
[AN] this reduces warehouse cost such as rent, maintenance etc.
[AN+] the saved up costs can be used for future operations thus improving profitability.
[KN2] JIT prevents excessive inventory from becoming outdated or not needed.
[AN] this can help business inventory from going to waste.
[AN+] also since inventory is ordered only when needed, the business can quickly adapt to the customer changes as well
[KN] however, JIT only relies with up to date coordination with the supplier, if not the production process can be slowed.
[AN] if there is any sudden change in the supply issue for example delay in delivering due to external factors like closure of roads, the business would not be able to meet customer demand on time.
[AN+] leading to customer dissatisfaction and bad reputation.
[SOL1] this problem can be overcome by business maintaining strong relationship with multiple reliable suppliers.
[2] secondly, using advanced technologies to know the accurate and exact demand of the customers so that business would not face the risk of lower inventory level.
[EF] dynamic market therefore customer preferences or market changes can happen any time
[2] changes in economic conditions such as recession or inflation can impact supplier stability and raw material costs.