Reference no: EM131834328

What are your comments on this conclusions and the introduction of this paper?

Conclusion:

So it is clear that although Most companies are not set up for JIT and it is rather complicated. Many suppliers for manufacturers do not like working with this system because they have minimum quantities for orders that are purchased. To start up a JIT method there is a lot of costs involved which is not usually in the company immediate interest. Just-in-Time method is the most effective because it is the most well-rounded tool that can be used to keep an inventory lean and up to date, for two main reasons. First, there are 7 main types of inventory management all have their purpose in the warehouse, but JIT is one of the only ones that have the ability to utilize the best use of space. the warehouse space is calculated by the square foot and there is an amount attached to that as well, so this needs to be an area that needs constant monitoring which JIT, by design performs naturally. This type of method helps to control the majority of problem areas so that management can focus on the things that matter, instead of constantly counting and pacing the floors waiting for the parts to arrive. But most importantly, many of the issues that surround inventory today is that they are tooled improperly for what they are meant to perform. By using JIT, it will take all of the guesswork out of the equation and help to provide a more accurate inventory. Using this system parts will not be in your storage area without a purpose, it will be a more active area and have more legitimacy.

Introduction:

Imagine for a moment that you budgeted a specific dollar amount for groceries and had you go purchase what you needed for the week for either yourself or your family. Now, after you have this you make an inventory of what you have that you will need to live on. Now the space that you have is reduced dramatically and must be filled with the same life-sustaining items but determinations have to be made on what is kept and dropped. At this point, you will have to make critical decisions that will determine how effective your inventory will be at this point forward. This is the Just-In-Time method it utilizes this small space and the allotted money that you have and continues to work to make this as small as it can be while effective at the same time. As industries become leaner they will have to depend on methods like this to improve the ability to forecast items that will be needed to repair equipment and it will be, in time, perfect. "From the many different inventory management methods used today, the Just-in-Time inventory strategy has continued to be met with apprehension, even though its ability to reduce cost while keeping a lean and practical inventory is in its structure". As companies continue to strive to inventory the right part, at the right time, for the right price there is no better tool to have in your inventory's arsenal than JIT.