"Just in Time" Inventory

In many manufacturing industries there are problems between production scheduling and the ability for purchasers to wait for a product. A solution to this problem is called the just in time scheduling system. This type of inventory management has gained greater popularity over the recent years.

The whole purpose of JIT inventory control is to eliminate inventories altogether. The way to do this is by producing goods to correspond with projected shipping dates. This means that products are shipped directly to the purchaser as they leave the assembly line. This type of inventory control reduces production costs greatly.

Just in time inventory management is great for a stable economy and demand. However, it should not be used if the demand changes, which is often seen in a producer of consumer goods. The industry in which the manufacturing takes place cannot have problems with supply or unreliable shipping. You must remember that your supplier has to be dependable and there is enough lead time for the transportation of goods.

As you can imagine, the JIT inventory control would be extremely difficult to coordinate without the use of technology. Just in time inventory has to be controlled by a complex computer based system. Although these systems tend to be expensive, the money saved using JIT inventory control outweighs the cost of the computer system.

Just in time inventory control is a great alternative for manufactures. Like I said before, you have to make sure your industry is stable along with supply and shipping. JIT inventory control reduces costs, virtually eliminates inventory, and diminishes inventory handling.