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

Assignment Help:

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.


Related Discussions:- Advantages of just-in-time inventory management

External credit enhancement, It is in the form of third-party g...

It is in the form of third-party guarantees which protect against losses up to a particular fixed level. This is available in the form of a corp

Explain investment banks and securities firms, Investment banks and securit...

Investment banks and securities firms Investment banks support corporations or governments in the issue of new debt or equity securities. Investment banking comprises Th

Payback period, Payback Period It is an amount of time, mainly measured...

Payback Period It is an amount of time, mainly measured in years; it takes previously the undiscounted cash inflows from a project equal the cash outflow. It indicates the leng

WACC, WHAT ARE THE MAIN VIEWS OF WACC PREVALENT IN THE FINANCIAL MANAGEMENT...

WHAT ARE THE MAIN VIEWS OF WACC PREVALENT IN THE FINANCIAL MANAGEMENT LITERATURE

Working capital cycle for a trade, Working capital cycle for a trade ...

Working capital cycle for a trade Inventories days (time inventories are held before being sold)   Plus   Trade receivables days (how long

On-the-run treasury issues, On-the-run treasury issues are the most r...

On-the-run treasury issues are the most recently auctioned issues of a given maturity. They include Treasury bills of 3-month, 6-month and 1-year maturity;  treas

Interest rate risk in financial management, Q. Interest Rate Risk in financ...

Q. Interest Rate Risk in financial management Interest rate risk is the variation in the single period rates of return caused by the fluctLlaoons in the market interest rate. M

Beta, Beta Beta is a measure of the market risk, or methodical risk, o...

Beta Beta is a measure of the market risk, or methodical risk, of a particular privacy or portfolio. Systematic risk defines any risk that influences the value of a huge numbe

Help with 4 questions, I need assistance with 4 questions. How do I know s...

I need assistance with 4 questions. How do I know someone can help me and have some idea of what it would cost before submitting the information? Also, how fast is the turnaround

Leading rate in the credit market , LENDING RATES IN THE CREDIT MARKET ...

LENDING RATES IN THE CREDIT MARKET One of the crucial decisions involved while extending loans is the lending rate. Intermediaries will base their lending rate decisions on thr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd