Jit purchasing arrangements-jit benefits, Managerial Accounting

JIT purchasing arrangements

JIT philosophy also extends to adapting JIT purchasing techniques whereby delivery of material immediately precedes their use. By arranging with suppliers for more frequent deliveries stocks can be out to a minimum
Considerable savings in material handling expenses can be obtained by requiring suppliers to inspect materials before their delivery and guarantee their quality.

This improved service is obtained by giving more business to fewer suppliers and placing long tern purchasing orders, therefore the suppliers has an assurance of long term sales and can plan to meet this demand.

Companies that have executed JIT purchasing techniques have claimed to substantially reduce their investment in raw materials and work in progress stocks.

Other benefits comprise:

1. Considerable savings in factory space.
2. Big amount discount.
3. Savings in time from consulting with less suppliers
4. Reduction in paper work arising from issuing (long term orders) to a few suppliers rather than individual purchase order to many suppliers.

Posted Date: 12/6/2012 7:14:33 AM | Location : United States







Related Discussions:- Jit purchasing arrangements-jit benefits, Assignment Help, Ask Question on Jit purchasing arrangements-jit benefits, Get Answer, Expert's Help, Jit purchasing arrangements-jit benefits Discussions

Write discussion on Jit purchasing arrangements-jit benefits
Your posts are moderated
Related Questions
Himalaya Ltd.'s Profit and Loss Account for the year ended on 31st December 2005 is specified below. You are needed to determine the working capital needs under operating cycle met

calculate the net operating income ,  evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 p

Integer Programming It is a technique for solving a linear programming model with an added constraint that the decision variables must only be non-negative integers. In the

Frontier Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Frontier Sports is owned and operated by Wally Schnee, a well-known sports enthus

How to write introduction on strategy plan


Benefit of product life cycle costing The benefits of product life cycle costing are summarized as follows: 1) The product life cycle costing results in earlier actions to g

ABM(Activity based management): ABM system is primary source of information for AM as a part of ABM identify value added and non-value added activity and management are also to

Cost-volume relationship utilization Cost-volume-profit study is an estimating concept which can be employed in a variety of pricing circumstances. You can employ the cost-volu

QUESTION 1 PART A  You are provided with the given information relating to ABC Limited. The accountant is currently developing the budget for the next three months endin