2.4.3 Stock control (3/4) - Just in Time management

Question 1

Just in Time ( JIT)

Answer 1

A manufacturing system in which materials or components are delivered immediately before they are required in order to minimise stock/storage costs

Question 2

Advantages of Just in time (JIT) (4)

Answer 2

1) System reduces waste , obsolete and damaged stocks
2) More factory space made available for productive use e.g new machinery
3) Costs of stockholding reduced significantly e.g staff , premises.
4) Money not tied up in stocks therefore it improves cash flow ?

Question 3

Disadvantages of Just in Time (JIT) (3)

Answer 3

1) Advantages of bulk buying maybe lost as constantly reordering
2) Difficult to cope with surge in demand - customers maybe
3) A lot of faith placed in the reliability + Flexibility of suppliers. There’s always a risk of delivery issues -> this can cause a halt in production