Just-In-Time Inventory System

Time Inventory System Due to the changing economic flows that are happening around the globe, management Is certainly looking for a way that their business can adopt to it. Customer preferences is not the only determining factor that management consider nowadays, but also the development that caused by climate change and the increasing cost of raw materials.

These factors urge managers to look for a better way of managing inventory in a practical way without sacrificing the turn- round period of delivering customer demands. One way of Inventory control is the Just-in-time Inventory system. Overview Just-in-time Inventory system was first introduced and tested In Japan by Tallish Non, who Is referred as the father of KIT system, during the sass. KIT was perfectly applied in Toasts manufacturing system of delivering products with minimal delays (Change and Paddocks, pi).

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In Toasts application, KIT focused on three important aspects of the production process namely the people, plants, and system. The system acknowledges the importance of having omitted people involved In the production process, having a plant and equipment In working and efficient level, and production time-frame that Is well scheduled to meet deadlines. Nowadays, KIT has evolved and became a famous inventory strategy employed by various industries believing in the capacity of the system to strengthen their competitiveness with improved product quality and reduced waste materials.

In addition, KIT helps manufacturing business maximize scarce resources by manufacturing the number of products needed during a specific period. In using the just In time Inventory system, management believes that there Is no need to carry huge amount of Items In the Inventory, rather, they produced goods that they believe customer will need for the next few months. SITS Advantages and Disadvantages The main objective of the Just in time inventory system is to streamline the production process only to the number of products that the customer will need.

By using the KIT, the company will be utilizing raw materials in its maximum level by minimizing waste products. In addition, the company will be putting lesser amount of money in Inventory since only minimal number Is required to be kept on storage. However, the major drawback of the system Is the likelihood of not able to meet sudden bulk orders on due time. Since limited inventory is kept, the company will have the difficulty fulfilling unexpected large orders (Bragg, 2013). KIT on Fast Food Companies Just in time inventory system is a widely utilize inventory control today.

Many organizations found the essence why Toyota remains successful despite recent calamities that happened In Japan. Most of them realized the advantage of having a elastic Inventory rather than creating a bulk of Items that might remain unsold for a long period, and worst is broken by calamities. Mac Donald Fast Food Restaurant is one of the fast food enterprises that appreciate the essence of Just-in-time. Mac Donaldson previous routine is to pre-cook all the burgers and keep it as long as possible under the lamps to keep it warm. All unsold items were then placed in the waste bin Cain, 2011).

The management believes that having pre-cook Items will allow fast customer service. However, the costs of all the wasted products burden the company. Realizing ten nudge amount AT money Tanat were Dealing town every cay, ten management shifted into the Just in time production process. The company invested on training their staff to prepare burgers quickly. Initially, the company had to finance the training, but the result of it is more beneficial to the company. Since the burgers were cooked upon clients order, Mac Donald can serve fresh and hot products that are more satisfying to the customers.

Shifting into the Just in time system allows Mac Donald to improve the quality of products they serve, provide quality customer arrive, and reduce cost of wasted products since they only make burger and other products as ordered. Similarly, Wendy also employed the Just in time inventory system in their various restaurants. Notice how service crew that are receiving customer orders at the counter announce the list of items over the microphone, and gave instruction to the client to wait for their number to be called. The reason for this procedure is that a service crew assigned at the pantry will only prepare foods upon clients order.

Since the cooks are well-trained to prepare foods in a short time of erred, customers will able to get their freshly cooked orders with little delays (Apply, 2nd edition). Conclusion Just in time inventory system is one of the cost control methods that aim to provide companies, like fast food establishments, more flexibility and profitability. By eliminating huge a amount of money on wasted and scrap products, business entities can earn a higher income. Likewise, if food products are served in a fresh and warm state, customers will certainly have a better satisfaction and enjoyment.