JIT Stock control system

Created by: sian
Created on: 07-02-18 09:36


	JIT Stock control system
	Advantages There is no need for buffer stocks, the costs of stock holding and stick management are reduced There is no need for stockpiling, thus improving cashflow and reducing the need for working capital JIT fosters lean production and productive efficiency	Disadvantages There is complete reliance on third party suppliers Administration and implementation costs of JIT are high There is an inability to meet unexpected changes in demand
	Evaluation Definition - JIT is a stock control system that avoid the use of holding stocks (inventory). Instead stocks are supplied and delivered only when they are needed for production.It is designed to eliminate the costs of holding stock eg storage, maintenance, security (theft) and wastage.It causes a business only to acquire raw materials / components only when they are required.Having access to local and reliable suppliers is essential for JIT as it relies on an efficient stock ordering and delivery agreement.

JIT Stock control system

Advantages

There is no need for buffer stocks, the costs of stock holding and stick management are reduced
There is no need for stockpiling, thus improving cashflow and reducing the need for working capital
JIT fosters lean production and productive efficiency

Disadvantages

There is complete reliance on third party suppliers
Administration and implementation costs of JIT are high
There is an inability to meet unexpected changes in demand

Evaluation

Definition - JIT is a stock control system that avoid the use of holding stocks (inventory). Instead stocks are supplied and delivered only when they are needed for production.It is designed to eliminate the costs of holding stock eg storage, maintenance, security (theft) and wastage.It causes a business only to acquire raw materials / components only when they are required.Having access to local and reliable suppliers is essential for JIT as it relies on an efficient stock ordering and delivery agreement.

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JIT Stock control system