登录查看更多内容

How do you think about just-in-time inventory vs. traditional inventory?

由人工智能和领英社区提供技术支持

Inventory management is a crucial aspect of any business that deals with physical goods. It involves planning, controlling, and optimizing the flow of materials from suppliers to customers.

There are different methods of inventory management, but two of the most common ones are just-in-time (JIT) and traditional inventory.

在这篇协作文章中查找专家回答

由社区从 3 条内容中精选。了解更多

1 What is JIT inventory?

JIT inventory is a system that aims to minimize the amount of inventory that a business holds at any given time. It relies on frequent and accurate communication with suppliers and customers, and on flexible and responsive production processes. The goal of JIT inventory is to reduce waste, costs, and risks associated with excess inventory, such as obsolescence, spoilage, theft, and damage.

添加您的观点

Anthony Navas

President
举报内容
JIT inventory is best when the manufacturer allows you to produce 3+ months of inventory and has low storage cost allowing for Quality discounts that offset the pallet and storage fees. Now that the markets are cooling a little Bit compared to 20/21 , more facilities are open to holding inventory. Without storing inventory and taking advantage of price breaks JIT becomes rather expensive. Find a great partner who works with you and find the happy medium!

已翻译

赞

2 What is traditional inventory?

Traditional inventory is a system that involves keeping a certain level of inventory on hand to meet the expected demand. It requires forecasting the demand and ordering the inventory in advance, usually in large batches. The goal of traditional inventory is to ensure availability, avoid stockouts, and take advantage of economies of scale.

添加您的观点

William Deery

Senior Operations Management Leader
举报内容
In traditional inventory models it’s important to have a system that can calculate histrionic sales and set minimum and maximum levels. Once your levels are set, auto ordering to fill inventory levels based on historic sales will help you keep your inventory levels optimized. Having incorrect levels of inventory can result in taking too many markdowns, reducing overall margins. Optimized inventory and minimum levels are especially important if your managing an Omni channel enterprise.

已翻译

赞

3 What are the advantages and disadvantages of JIT inventory?

JIT inventory offers several advantages, including lower inventory carrying costs due to reduced space, labor, and capital requirements, higher quality and customer satisfaction as inventory is produced or delivered as needed, and greater flexibility and adaptability to changing market conditions and customer preferences. However, JIT inventory also has some drawbacks, such as increased dependency and vulnerability due to external factors such as weather, strikes, accidents, or disruptions, higher coordination and integration costs due to more frequent and accurate communication and collaboration among different parties, and higher operational and financial risks due to less buffer and cushion to cope with unexpected fluctuations in demand or supply, which can lead to lost sales, dissatisfied customers, or increased costs.

添加您的观点

4 What are the advantages and disadvantages of traditional inventory?

Traditional inventory has some advantages, such as lower dependency and vulnerability, as it is less affected by external factors and can absorb some variations in demand or supply; lower coordination and integration costs, as it requires less frequent and complex communication and collaboration among different parties; and lower operational and financial risks, as it has more buffer and cushion to cope with unexpected fluctuations in demand or supply, which can prevent lost sales, dissatisfied customers, or increased costs. However, it also has some disadvantages, such as higher inventory carrying costs, as more space, labor, and capital are needed to store and maintain inventory; lower quality and customer satisfaction, as it is produced or delivered in advance, increasing the chances of defects, errors, or delays; and lower flexibility and adaptability, as it is less responsive to changing market conditions and customer preferences. Consequently, traditional inventory can be a double-edged sword, offering both benefits and drawbacks.

添加您的观点

5 How do you measure and improve inventory turnover in a traditional inventory system?

Inventory turnover is a ratio that gauges how effectively a business utilizes its inventory to generate sales. It is calculated by dividing the cost of goods sold by the average inventory value. A higher inventory turnover implies that inventory is sold quickly and replenished often, while a lower inventory turnover suggests that inventory is sold slowly and accumulated excessively. To optimize inventory turnover in a traditional inventory system, a business can analyze the demand patterns and trends of its products and customers, and adjust the inventory levels and reorder points accordingly. Additionally, they can implement inventory control techniques, such as ABC analysis, cycle counting, and safety stock, to refine the inventory classification, accuracy, and availability. Furthermore, they can negotiate with suppliers and customers to reduce the order lead times, batch sizes, and delivery frequencies, and to increase the discounts, incentives, and flexibility.

添加您的观点

Debbie Stone ??

?? Health & Wellness Ambassador ?? ■Helping you grow your secondary income ■ Doing the work you love, that is going to give you the meaning and fulfillment that you desire.
举报内容
JIT you run the risk of lost sales. Inadequate stock held. Unforgiving. Just takes an unexpected sale to wipe out stock. These days people expect now, no wait time.

已翻译

赞

Inventory Management

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How do you think about just-in-time inventory vs. traditional inventory?

1

2

3

4

5

1 What is JIT inventory?

2 What is traditional inventory?

3 What are the advantages and disadvantages of JIT inventory?

4 What are the advantages and disadvantages of traditional inventory?

5 How do you measure and improve inventory turnover in a traditional inventory system?

Inventory Management

给文章评分

感谢您的反馈

更多Inventory Management相关文章

更多相关阅读内容

How do you think about just-in-time inventory vs. traditional inventory?

1

2

3

4

5

1 What is JIT inventory?

2 What is traditional inventory?

3 What are the advantages and disadvantages of JIT inventory?

4 What are the advantages and disadvantages of traditional inventory?

5 How do you measure and improve inventory turnover in a traditional inventory system?

Inventory Management

给文章评分

感谢您的反馈

查看其他技能