Advantages of just-in-time inventory management, Financial Management

Q. Advantages of Just-in-time inventory management?

JIT inventory management methods look for eliminate waste at all stages of the manufacturing process by minimising or eliminating defects, inventory, breakdowns and production delays. This is achieved by enhanced workflow planning an emphasis on quality control and firm contracts between buyer and supplier.

One advantage of JIT inventory management process is a stronger relationship between buyer and supplier. This tenders security to the supplier who benefits from regular orders continuing future business as well as more certain production planning. The buyer advantageous from lower inventory holding costs lower investment in inventory and work in progress and the transfer of inventory management problems to the supplier. The buyer may as well benefit from bulk purchase discounts or lower purchase costs.

The importance on quality control in the production process reworking, reduces scrap and setup costs while improved production design can decrease or even eliminate unnecessary material movements. The result is a even flow of material as well as work through the production system with no queues or idle time.

Posted Date: 7/12/2013 2:40:47 AM | Location : United States







Related Discussions:- Advantages of just-in-time inventory management, Assignment Help, Ask Question on Advantages of just-in-time inventory management, Get Answer, Expert's Help, Advantages of just-in-time inventory management Discussions

Write discussion on Advantages of just-in-time inventory management
Your posts are moderated
Related Questions
A proforma cost sheet of a company provides the following data:   RO Cost (per unit)      Raw materials 52

The price of the embedded option comprises two components. The first is the value of the same bond assuming it has no embedded option (option-free bond), th

Short Term Solvency or Liquidity Ratio's   CR:          The Current Ratio is calculated by current assets to current liabilities and is the index of company's financial stab

CLASSIFICATION OF SOURCES OF FINANCE In the market, there are several sources of finance, with conflicting risk characteristics and with conflicting cost structures. Numerous m

Advantages of ARR: It is simple to calculate and easy to catch. With the help of this technique, direct comparisons among proposed projected of varying lives with no bu

Partition of Investment Risk The expected returns and the fluctuation in returns are two factors in evaluating investments. Expected Returns While the actual returns

Q.  A sum of $2,500 is deposited in a bank account that pays 5.25% interest compounded weekly. How long will it take for the deposit to double?  How long will it take you to accrue

Is it possible to use a constant WACC in the valuation of a company with a changing debt? Theoretically, the WACC can only be constant if a constant debt is expected. If the de

Question 1 Describe the process involved in accounting. What are the objectives of accounting? Question 2 Briefly explain the role of management accounting. Also expalin the

International financial system has always been a debatable and crucial focus of the world discussion and it is mainly due to the repression of the economies especially after the cu