What Are the Benefits of the Just in Time Inventory Management System?
mig welder image by Jake Hellbach from Fotolia.com jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.com/images/a06/bo/sl/benefits-time-inventory-management-system_-1.1-800X800.jpg’); }); Just-in-time inventory management can save a business money. Just-in-time inventory management, also known as lean production, is based on a simple supply-and-demand principle: Buy only what you need and produce only what you can sell. Business owners who employ this strategy schedule smaller, more frequent shipments of raw materials so that they have on hand only what they need to fulfill immediate production needs. In turn, they often apply the same principles to order fulfillment, encouraging customers to order smaller quantities more often. At its heart, just-in-time is about saving money and other resources by operating a leaner business. Reduces Storage Needs Just-in-time inventory management reduces the need for storage costs related to t
