Inventory Management In The Jit Age

While the just-in-time (JIT) inventory management philosophy is simple, its execution is not. In order to manage inventories effectively, there should be a clear understanding of inventory classification. In a JIT environment, delivery of purchase items should be to the point of use, with any double...

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Bibliographic Details
Published in:Production and inventory management journal 1988-07, Vol.29 (3), p.57
Main Author: Jordan, Henry H
Format: Article
Language:English
Subjects:
Implementations
Inventory
Inventory control
Inventory management
Just in time
Material requirements planning
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Summary:While the just-in-time (JIT) inventory management philosophy is simple, its execution is not. In order to manage inventories effectively, there should be a clear understanding of inventory classification. In a JIT environment, delivery of purchase items should be to the point of use, with any double handling of material avoided. With the possible exception of high-dollar-value items identified by serial number, inventory records can be posted by backflushing. This method automatically calculates component usage by bill-of-material explosion of the end item for the quantity completed. Each item should be identified by an inventory policy code to designate the specific method of inventory management to be applied to the item. JIT requires the flow of material in the exact quantity required at the exact time, and material requirements planning is the best technique to accomplish this.
ISSN:0897-8336