Benefits that might accrue to an organisation that adopts Just In Time (JIT) stock
management system
1. Set up times are significantly reduced in the factory.Cutting down the set up time to be more
productive will allow the company to improve their bottom line to look more efficient and focus time
spent on other areas that may need improvement. This allows the reduction or elimination of the
inventory held to cover the changeover time.
2. The flows of goods from warehouse to shelves are improved.Having employees focused on
specific areas of the system will allow them to process goods faster instead of having them vulnerable
to fatigue from doing too many jobs at once and simplifies the tasks at hand. Small or individual piece
lot sizes reduce lot delay inventories which simplifies inventory flow and its management.
3. Employees who possess multiple skills are utilized more efficiently.Having employees trained to
work on different parts of the inventory cycle system will allow companies to use workers in
situations where they are needed when there is a shortage of workers and a high demand for a
particular product.
4. Better consistency of scheduling and consistency of employee work hours.If there is no demand
for a product at the time, workers don?t have to be working. This can save the company money by not
having to pay workers for a job not completed or could have them focus on other jobs around the
warehouse that would not necessarily be done on a normal day.
5. Increased emphasis on supplier relationships.No company wants a break in their inventory
system that would create a shortage of supplies while not having inventory sit on shelves. Having a
trusting supplier relationship means that you can rely on goods being there when you need them in
order to satisfy the company and keep the company name in good standing with the public.
6. Supplies continue around the clock keeping workers productive and businesses focused on
turnover.Having management focused on meeting deadlines will make employees work hard to meet
the company goals to see benefits in terms of job satisfaction,promotion or even higher pay.
marto answered the question on February 26, 2019 at 08:46
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Date posted: February 26, 2019. Answers (1)
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Additional information:
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2. During the year, the excess production units are held in inventory at a cost of Sh.6 per unit per
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Date posted: February 26, 2019. Answers (1)
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Required;-
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actual production costs incurred during the year are given below.
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Additional information:
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Date posted: February 26, 2019. Answers (1)