Just-In-Time (JIT) Inventory Policy: Difference between revisions
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{{Learning concept | {{Learning concept | ||
|Description=The just-in-time inventory policy seeks to have production inputs (both raw materials and work-in-process) delivered to the manufacturing site just as they are needed | |Description=The just-in-time inventory policy seeks to have production inputs (both raw materials and work-in-process) delivered to the manufacturing site just as they are needed. | ||
It is a technique designed to minimize a company's investment in inventory. In a manufacturing company, this means receiving purchases of raw materials just in time for use in the manufacturing process and completing the manufacture of finished goods just in time to fill sales orders. Just-in-time also may be described as the philosophy of constantly striving to become more efficient by purchasing and storing less inventory. | |||
|Wikipedia reference=http://en.wikipedia.org/wiki/Just_in_time_%28business%29 | |Wikipedia reference=http://en.wikipedia.org/wiki/Just_in_time_%28business%29 | ||
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Latest revision as of 14:41, 17 January 2014
Description
The just-in-time inventory policy seeks to have production inputs (both raw materials and work-in-process) delivered to the manufacturing site just as they are needed.
It is a technique designed to minimize a company's investment in inventory. In a manufacturing company, this means receiving purchases of raw materials just in time for use in the manufacturing process and completing the manufacture of finished goods just in time to fill sales orders. Just-in-time also may be described as the philosophy of constantly striving to become more efficient by purchasing and storing less inventory.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Just in time %28business%29
Learning Material
Covered in Topic(s)
| Functional Business Processes |
| Inventories & the COGS |