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JIT is a great system, but I think it is not applicable for many industries.
inventory plannings are based on keeping inventory down and to a minimal level where there is a consisting routine.so there are no customers are employees low on inventory.
How much RM, When to order it… Economic order quantity = minimize ordering and holding costs. MRP-Material requirement planning = computer based to schedule a control the request of exact amounts of materials MRP II-Manufacturing resource planning = same comp based technique that integrates production planning and control activities from finance to marketing JIT-Just-in-time inventory planning = often called stockless since it strives to have the least amounts of inventory as possible, leveraging the workstation ability to produce.
These four inventory management techniques are to be followed in the inventory process
MRP II is a system used to manage and control MRP techniques /process for thorough system of production. While JIT - Just in Time reduces the storage system to zero ,with the help of the other inventory management techniques. All the techniques work interdependently.
inventory management technics is concerned with defferent way managing inventory and keeping cost at it minimum level posible ; the following are some technics that is commonly used. 1, ECONOMIC ORDER QUANTITY 2, MATERIALS REQUREMENT PLANING 3, MANUFACTURING RESOURCE PLANNING 4, JUST-IN -TIME
Just in time (JIT) inventory planning
important of inventor management are four economics,material,maintenance resource planning and just in time (JIT) inventor planning
well knows now
There are four important techniques of inventory management. These techniques include:
economic order quantity
materials requirement planning
manufacturing resource planning
just-in-time inventory planning
Two basic decisions that can help minimise inventory are:
how much raw material to order
when to order it from suppliers
The economic order quantity, is designed to minimise the sum of both ordering costs and of holding costs. Ordering costs are the costs associated with actually placing the order such as administrative paperwork, delivery, receiving, and inspection. Holding costs are those costs associated with keeping the items on hand such as storage, finance charges, and materials handling costs.
A more complicated inventory problem occurs with dependent demand inventory, The most common inventory control system used for handling dependent inventory is materials requirement planning (MRP).
MRP is dependent demand inventory planning and involves the implementation of a control system that schedules the exact amount of all materials required to support the desired end product. MRP is computer based and requires sophisticated calculations to coordinate information on inventory location, bills of materials (a listing of all components including partially assembled pieces and basic parts that make up an end product), purchasing, production planning, invoicing, and order entry specified in the master schedule.
Inventory levels are based on past consumption and are aimed at reducing inventory costs and keeping the production line supplied with the materials necessary to keep it running smoothly.
Manufacturing Resource Planning (MRP II) - a technique for managing inventory. It is a computer-based information system that integrates the production planning and control activities of basic MRP systems with related financial, accounting, personnel, engineering and marketing information.
Just-in-time (JIT) inventory planning is a system designed to reduce the level of an organisation's inventory to zero. Sometimes these systems are referred to as stockless systems or zero inventory systems.
JIT is called a demand-pull system because each workstation produces its product only when the next workstation says it is ready to receive more input. This is in contrast to the traditional batch-push system, in which parts are made in large, supposedly efficient batches and pushed to the next operation on a fixed schedule, where they sit until used.
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