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Essay Subject: This paper is about JIT inventory management It is an essay based on an ...... More...

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Paper Abstract: This paper is about JIT (Just In Time) inventory management. The similar goals of suppliers and buyers regarding inventory. The essay is based on an article about the problems vendors face in a JIT environment. Paper Introduction: Just in Time Inventory Management In an article published in Long Island Business News ScottClark writes about just-in-time inventory management He explains thatboth suppliers and buyers have similar goals since neither party wants tohold excess inventory and both parties want to pass along the carryingcost to the other According to Clark this is why suppliers are oftenwilling to offer deep discounts to customers willing to buy in largequantities or offer firm commitments Clark suggests that the just-in-timeinventory management does not work for Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Just in Time Inventory Management In an article published in Long Island Business News (1998), ScottClark writes about just-in-time inventory management. Attimes, this safety stock will represent excess inventory - and excessinventory has a carry costs. Still another risk and cost ofcarrying inventory involves shrinkage. There are a number of factors to consider when one calculatesinventory carrying and storage costs in a JIT environment. Obsolete product is inventory that has had no sales fora specific period of time, and its owner has no alternative uses for it. Clark suggests that one of the most significant risks to a vendor in aJIT arrangement involves the risk that a new item stocked based on anindication of interest by a customer, but without a firm commitment in theform of a purchase order from that customer, will become obsolete inventorywhen the expected orders never materialize. "Use Blanket Purchase Orders to Boost the Bottom Line." Long Island Business News, 45(39): 2. For the vendor, long-term revenue losses resulting from lostcustomers and lost goodwill must be balanced against the costs of buildingand holding higher safety stock levels. According to Clark, this is why suppliers are oftenwilling to offer deep discounts to customers willing to buy in largequantities or offer firm commitments. (1998). At the same time, it is importantto remember that storage and spoilage and shrinkage costs tend to increaseover time. According to Clark, there are other problems with a JIT system from avendor's perspective. Clark suggests that the just-in-timeinventory management does not work for some companies because theirsuppliers are unwilling to bear the costs of carrying the finished goodsinventory required for the customer to make JIT work. ReferencesClark, S. He explains thatboth suppliers and buyers have similar goals since neither party wants tohold excess inventory, and both parties want to pass along the carryingcost to the other. Another carrying cost involves the cost ofobsolete inventory. A safety stock is aquantity of inventory held to allow for deviations in demand or supply. For example, without a firm commitment to buy it ishard to know how much to produce. All of these examples suggest the problems suppliers face when theircustomers ask them to become JIT suppliers. The supplier must decide howbest to manage its inventory levels, and the challenge is to optimize thequantities on hand so that excess inventories and obsolete inventory levelsare held to a minimum as are stock outs (Clark, 1998). For example,both suppliers and customers carry a safety stock. Shrinkage involves losses resultingfrom scrap, deterioration in the quality of inventory, and pilferage.Shrinkage often involves employee theft, but can also involve customershoplifting as well as vendor fraud. If the vendor's safety stock is sold,its customers' JIT production or distribution models may be thrown intochaos. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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