What are the advantages by using 'just in time' system?
Just In Time (or JIT) is vastly used in Japanese production firms. brought about by Toyota in the early/mid 90's.
it hugely speeds up production times, as there is no stock inventory on the factory bein stored. they company will order the stock to come 'just in time'. this increases the value of the product down the value added chain as the stock is there as and when required.
You Will now find more and more food retailers using the JIT system on low coded (low shelf life ) food such as meats, milk yogurts etc. It is used to keep the warehouse inventory at a minimal, this saves money , improves the freshness of the foodstuff and reduces the size of the storage area in the business environment. This again saves money. The JIT is a very fragile process as the supply chain has to work very closely with the product manufacturer to ensure that as stock on hand reaches a "reserve factor" the new stock being manufactured is ready to be is be dispatched.
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