No.72 ~ Importance or Characteristics of Just in Time || Student Notes ||

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Importance of Just in Time
1.) Reduces Inventory Wastage
2.) Reduce Warehouse Cost
3.) Increase Customer relation
4.) Local Sourcing
5.) Smaller investments
1.) Reduces Inventory Wastage
The material is ordered as per the requirement and when needed. The purchased material gets directly into the production line.
2.) Reduce Warehouse Cost
Maintaining the warehouse includes cost and excess inventory double the cost. In JIT this cost gets reduced because you only order material when your customer order.
3.) Increase Customer relation
When a company produces the products as per the customer requirement, and customers get its product as per their desire.
4.) Local Sourcing
In just-in-time manufacturing start when an order is placed. The order has its time limits. Management needs to go for a local supplier who can deliver raw material earlier.
5.) Smaller investments
In a JIT model, only ordered stocks are obtained, which is less in quantity as compared to continuous production. Therefore less working capital is required.

[@mangeshmorkande8614]

Good information.

[@Cartoon_pix456]

A very good and simple way of explanation.

[@StudentNotes]

Thank You

[@gouravmehta4030]

Best 💯

[@StudentNotes]

Thanks