COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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of purchasing goods required to run entrprise
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of reducing inventories by co-ordinating the delivery of materials just before they are needed
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Detailed explanation-1: -What Is Just-in-Time (JIT) in Inventory Management? JIT is a form of inventory management that requires working closely with suppliers so that raw materials arrive as production is scheduled to begin, but no sooner. The goal is to have the minimum amount of inventory on hand to meet demand.
Detailed explanation-2: -The just-in-time (JIT) inventory system minimizes inventory and increases efficiency. JIT production systems cut inventory costs because manufacturers receive materials and parts as needed for production and do not have to pay storage costs.
Detailed explanation-3: -JIT inventory management increases productivity by reducing the time and resources required for manufacturing. This ensures faster production and shorter production runs. You can also implement product changes quickly as there is less raw material stock.