Just in Time

What inventory system developed by Toyota?

• Kaizen

• Just in Time

• Lean Production

• Cell Production

How did JIT benefit Toyota?

• Land and resources were scare

• No room for storage

• Labor cost was high

• Sales was low

JIT could also means

• Buy in bulk

• Just enough stock

• High inventory

• Zero inventory

What are the conditions of JIT?

• Supply is near

• Many suppliers

• Reliable supplier

• Flexible workers and equipments

What are the costs of holding inventory?

• Storing cost

• Expired stock

• Lead time will be short

• Customer will have to wait

What are the disadvantages of holding low inventory?

• Low cost

• Opportunity cost

• Lost of sales

• Economies of scale

When should a business order more stocks?

• Lead time

• Maximum level

• Minimum level

• Reorder point

What are the cost of storing?

• Stock

• Security

• Facilities

• Packaging

What are the types of inventory?

• Finished product

• Work in progress product

• Expired product

• High quality product

What is meant by JIT?