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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.
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