ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A product with constant demand
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A specilised product unique to each costumer
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A product with unpredictable demand
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A product with long delivery lead time
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Detailed explanation-1: -JIT inventory ensures there is enough stock to produce only what you need, when you need it. The goal is to achieve high volume production with minimal inventory on hand and eliminate waste.
Detailed explanation-2: -For JIT manufacturing to succeed, companies must have steady production, high-quality workmanship, glitch-free plant machinery, and reliable suppliers. The JIT inventory system contrasts with just-in-case strategies, where producers hold sufficient inventories to have enough products to absorb maximum market demand.
Detailed explanation-3: -To achieve JIT production, there is a need for very close communication between all the parties involved in the entire supply chain. This communication technique is often referred as “Kanban”. In JIT, immense focus is on quality of the final product and companies work to achieve “first time right” for all goods.