"Just in Time" Inventory

Paper Summary:

Just-in-time inventory (JIT) is the concept of only carrying as much inventory as needed to supply customers or consumers. Many companies are using JIT to reduce inventory costs and increase gross profits. It makes more sense for companies to use their dollars elsewhere, rather than tying them up in inventory that is just sitting in a warehouse. This paper discusses the history of JIT and compares JIT with traditional systems. It also discusses the advantages and disadvantages of JIT and gives examples of companies that use the system.

From the Paper:

"Wal-Mart is constantly finding ways to replenish their stores by meeting the demands of the consumers. Although Wal-Mart has many suppliers, several years ago Wal-Mart collaborated with Proctor & Gamble (P&G). For a significant up-front investment, Wal-Mart is linked with P&G's inventory management system. By using electronic commerce (e-comm), Wal-Mart's inventory is replenished without losing profits. The just-in-time process works well for Wal-Mart as they continue to meet the demands of the consumers. Wal-Mart has used this process to replenish their clothing as well. Wal-Mart has mirrored the same process into their retail business. Wal-Mart is able offer the consumer more than ninety-eight percent of a chance of finding a complete selection of fashion."

More papers on "Just in Time" Inventory:

• Research Paper # 91255 : "Just-in-Time Inventory and Quality Control"
• Term Paper # 105563 : "Just-In-Time Inventory Systems"
• Research Paper # 63081 : "Just-In-Time"
• Case Study # 116908 : "Just-In-Time"

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