Just in time (costing)
What is Just in Time (JIT)?
Solution:
Just in Time can be defined as an inventory strategy that is employed by an organization to increase the efficiency and also reduce the waste by receiving the goods only when they are actually required. This can help in reducing the inventory costs. This method will be most useful when the management is able to accurately forecast the demand. JIT stands for just in time, and this is an approach which is used in inventory valuation. It is a system which ensures the quantity of raw material to receive and the time duration. For this purpose the supplier should be selected, who agrees to supply the requisite quantity at the scheduled time. JIT is a company specific concept.
The managers should be completely aware of all the shortcomings of JIT and their possible effect during implementation. The supplier should be selected properly; the one who can supply the desired quantity and quality of inventory on time shall be selected. The JIT system relies on the employees and supplier. So, the employee should be properly trained so that he can make predictions about the future demand of inventory. The training of employees and sound relationship with supplier can help in avoiding the cautions required in implementation of JIT.
Just in Time (D)
The term just-in-time was initially associated with Mr. TaiichiOhno and the Toyota Production System and is a philosophy or mindset encompassing continuous problem solving to eliminate waste. It is a system which regulates the quantity of raw material to be received and the time duration in which it is to be received. For this task that supplier should be selected, who agrees to supply the desired quantity at the scheduled time.
Here, desired quantity means the same quantity and quality. JIT prevents the unnecessary blockage of funds in inventory. It works on the principle of to call for the inventory when it is required and not block the funds in inventory. The process of waste elimination
Solution:
Just in Time can be defined as an inventory strategy that is employed by an organization to increase the efficiency and also reduce the waste by receiving the goods only when they are actually required. This can help in reducing the inventory costs. This method will be most useful when the management is able to accurately forecast the demand. JIT stands for just in time, and this is an approach which is used in inventory valuation. It is a system which ensures the quantity of raw material to receive and the time duration. For this purpose the supplier should be selected, who agrees to supply the requisite quantity at the scheduled time. JIT is a company specific concept.
The managers should be completely aware of all the shortcomings of JIT and their possible effect during implementation. The supplier should be selected properly; the one who can supply the desired quantity and quality of inventory on time shall be selected. The JIT system relies on the employees and supplier. So, the employee should be properly trained so that he can make predictions about the future demand of inventory. The training of employees and sound relationship with supplier can help in avoiding the cautions required in implementation of JIT.
Just in Time (D)
The term just-in-time was initially associated with Mr. TaiichiOhno and the Toyota Production System and is a philosophy or mindset encompassing continuous problem solving to eliminate waste. It is a system which regulates the quantity of raw material to be received and the time duration in which it is to be received. For this task that supplier should be selected, who agrees to supply the desired quantity at the scheduled time.
Here, desired quantity means the same quantity and quality. JIT prevents the unnecessary blockage of funds in inventory. It works on the principle of to call for the inventory when it is required and not block the funds in inventory. The process of waste elimination