JIT Inventory Management Strategy

2019 ◽  
pp. 57-74 ◽  
Author(s):  
Alan D. Smith
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Management Strategy ◽  
Economic Order Quantity ◽  
Just In Time ◽  
Order Quantity ◽  
Business World ◽  
Safety Stock ◽  
Operating Process ◽  
Strategic Approach

Implementing a just-in-time (JIT) inventory management strategy seems to be the latest hot topic in the business world, particularly in manufacturing industries. In today's competitive supply chain environment, more and more companies are either adopting JIT methodology or at least beginning to research and understand how JIT would affect their business. But what exactly is JIT? Many companies may be already putting into practice some of the concepts of JIT – such as looking at always improving or trying to reduce waste in terms of product or labor steps. Some companies may be fully ready to embrace a JIT operating process; yet, perhaps JIT is not the best choice for their business. The goal of this chapter is to develop a better understanding of JIT, from this history behind its inception to the various risks and benefits that relate to adopting JIT from an interdisciplinary/strategic approach to a transdisciplinary viewpoint. Those strategies, which include the basic methods of minimum stock, economic order quantity (EOQ), and Safety stock methods, are explored and explained in this chapter.

scholarly journals Técnicas de administración de los inventarios que usan las microempresas en Salvatierra, Gto., Pueblo Mágico

2020 ◽  
pp. 16-21
Author(s):  
Marcela Espinosa-Rodríguez ◽  
Ana Luisa Olvera-Montoya
Keyword(s):  
Inventory Management ◽  
Random Sampling ◽  
Management Practices ◽  
Descriptive Analysis ◽  
Economic Order Quantity ◽  
Level Of Service ◽  
Just In Time ◽  
Order Quantity ◽  
The City ◽  
Micro Enterprises

The inventory for organizations is important because it represents a considerable monetary investment. In the present investigation, the techniques used by microenterprises in this area are evaluated, making a descriptive investigation to identify their inventory management practices. Therefore, the objective of the investigation is to evaluate the inventory techniques that the micro enterprises of the city of Salvatierra use, other than being a Magic Town, the level of service they provide is associated with the inventory that the micro enterprises have at a given time to be able to meet the needs of customers, and thus provide a service that maintains the appointment. First, an instrument is developed that contains a series of issues related to ABC techniques, economic order quantity and just in time. The instrument makes use of a Likert scale to facilitate its analysis. Subsequently, it is applied to microenterprises using random sampling, having previously identified that they correspond to the micro sector, finally, a descriptive analysis is carried out, which shows the techniques they use within the administration of inventories, of such so that it is known how microenterprises work in the city of Salvatierra.

scholarly journals Implementation of inventory management in footwear industry

2021 ◽  
Vol 14 (2) ◽  
pp. 360
Author(s):  
Jeferson Conceição ◽  
José De Souza ◽  
Elton Gimenez Rossini ◽  
Alfonso Risso ◽  
Alexandre Beluco
Keyword(s):  
Inventory Management ◽  
Demand Forecasting ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Lot Size ◽  
Safety Stock ◽  
Forecasting Method ◽  
Abc Analysis ◽  
The Moment

Purpose: The objective of this research was to implement new inventory management in a footwear company through the analysis of indicators obtained from inventory data collection.Design/methodology/approach: The methods of ABC analysis, demand forecasting, safety stock, reorder point and economic order quantity were applied. The items in inventory were classified by order of financial importance through ABC analysis, and the proposed indicators were analyzed to determine the moment the inventory replenishment should be carried out as well as the purchase lot size for each item. The research also analyzed the behavior of the demand and pointed out the demand forecasting method that came closest to reality.Findings: The study presents a method of implementing inventory management based on indicators derived from the application of ABC curve methods, demand forecasting, safety stock, re-fulfillment point, and economic purchased lot. It also indicates how the ABC classification of stocks can be used to check the most representative materials in stock. The study also highlights that the rejection of modifications can be surpassed by obtaining favorable results.Research limitations/implications: The inventory management applied in this work is based on indicators that resulted in two main data which were able to define the size of the purchase lot to be ordered and the amount of material needed.Practical implications: The methods of ABC analysis, demand forecasting, safety stock, reorder point and economic order quantity were applied. The items in inventory were classified by order of financial importance through ABC analysis, and the proposed indicators were analyzed to determine the moment the inventory replenishment should be carried out as well as the purchase lot size for each item. The research also analyzed the behavior of the demand and pointed out the demand forecasting method that came closest to reality.Originality/value: In this study, a method applied is presented, highlighting the importance of the methodological application for the implementation of inventory management. The study contributes to the encouragement and adoption of methodologies to improve analysis and inventory management in companies.

scholarly journals Optimalisasi Persediaan Bahan Baku Atap Spandex dengan Metode Q

2021 ◽  
Vol 23 (1) ◽  
pp. 1-8
Author(s):  
Indah Rizkya ◽  
Fernando
Keyword(s):  
Production Process ◽  
Inventory Management ◽  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Order Quantity ◽  
Inventory Cost ◽  
Safety Stock ◽  
Total Inventory

Inventory management is one of the most important aspects in light steel construction business activities. The application of inventory management affects the continuity of the production process and improves the quality of service to consumers. Inventory is defined as an asset which includes goods owned by the company and has the potential to be sold within a certain business period in an effort to meet consumer needs at any time. Galvalume raw material inventory for the spandex roof production process often suffers from shortages due to immature planning. The shortage of inventory causes production not to run smoothly. The purpose of inventory management in this paper is to obtain an inventory policy to optimize the total inventory cost. The method used in this study is economic order quantity. Based on the results and discussion. Ordering raw materials will be made 6 times in a year with an order quantity of 116 with a safety stock of 12 units and will be ordered again when the raw materials are in 46 units. Total Inventory Cost (TIC) which was originally IDR 26.350.191,- can be saved to IDR 21.038.827,- so that the total savings that occurred amounted to IDR 5.311.364,- (20,15%).

scholarly journals ANALISIS PERBANDINGAN PENGENDALIAN PERSEDIAAN BAHAN BAKU METHANOL ANTARA PENDEKATAN MODEL ECONOMIC ORDER QUANTITY DENGAN JUST IN TIME PADA CV MAMABROS SERVICINDO BATAM

2017 ◽  
Vol 1 (2) ◽  
pp. 77-90
Author(s):  
Melpa Syari Kristiani Turnip ◽  
Dwi Kartikasari
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Just In Time ◽  
Order Quantity ◽  
Safety Stock ◽  
Reorder Point

Penelitian ini bertujuan untuk mengetahui metode pengendalian persediaan yang optimal digunakan oleh CV Mamabros Servicindo Batam dengan membandingkan antara kebijakan yang telah dijalankan perusahaan dengan dua metode persediaan yaitu Economic Order Quantity dan Just In Time. Teknik pengumpulan data yang digunakan dalam penelitian ini observasi, dokumentasi dan wawancara. Metode analisis data yang digunakan dalam penelitian ini adalah EOQ formula, Safety Stock, Reorder Point serta Just In Time Formula. Hasil penelitian menunjukkan bahwa sistem EOQ dan JIT lebih efisien dibandingkan dengan sistem persediaan perusahaan. Namun sistem JIT memiliki tingkat efisiensi biaya yang lebih tinggi dibanding sistem EOQ. Pada tingkat permintaan persediaan methanol 41.273 liter, sistem persediaan perusahaan menghasilkan biaya persediaan sebesar Rp 6.946.052, dibandingkan dengan JIT yang hanya memiliki biaya persediaan sebesar Rp 3.056.263 dapat menghemat biaya sekitar Rp 3.889.789 atau 55%  lebih efisien dari biaya persediaan perusahaan. Sedangkan metode EOQ menghasilkan biaya persediaan sebesar Rp 3.700.608, atau hanya 46% lebih efisien dari biaya persediaan berdasarkan kebijakan perusahaan.

scholarly journals PENGENDALIAN PERSEDIAAN BAWANG DAYAK (Eleutherine palmifolia L. Merr) MELALUI PENDEKATAN ECONOMIC ORDER QUANTITY (EOQ) (Studi Kasus Di UKM D’baloy Food Industries Kota Tarakan)

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Nurlela Machmudin ◽  
Vera Safitri
Keyword(s):  
Control System ◽  
Inventory Management ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Safety Stock ◽  
Food Industries ◽  
Reorder Point ◽  
The Cost

ABSTRACTThe aim of the research was to compare the inventory control system in D’Baloy Food Industries MSMEs and the optimal control of onion dayak stock to production dayak onion tea by the method of Economic Order Quantity (EOQ). Descriptive analysis to describe the control system of dayak onion stock in D'baloy Food Industries MSMEs. EOQ methods to analyze optimum order quantities and calculate the optimum frequency of purchases. Safety stock analysis and Reorder point analysis are also carried out. The results showed  the management of raw material inventories in UKM D’baloy Food Industries was not optimal. The current cost of raw material inventory is Rp.752.000 in a year, inventory costs using the EOQ method is Rp.463.448. If applying the optimum inventory, then the cost of dayak onion material stock that can be saved by D’baloy Food Industries MSMEs is Rp.288.552. The cost savings are achieved if the quantity of each message is increased from 10 kg to 29 kg. The frequency of purchases decreased from 96 times a year to 33 times. To avoid the problem of uncertainty in demand and price of raw materials, the safety stock that D'Baloy must provide is 30 kg. The raw material is re-ordered when the stock of dayak onions 38.01 kg. The maximum inventory that must be available before reorder 59 kg. Inventory management using the EOQ method places more emphasis on the availability of safety stock with the reason to overcome the problem of uncertainty in demand and fluctuations in raw material prices.Keywords :  Dayak Onion, Economic Order Quantity, InventoryABSTRAKUKM D’Baloy Food Industries belum menerapkan manajemen persediaan bahan baku bawang dayak secara optimal karena bahan baku yang tersedia di perusahaan masih kurang. Kekurangan bahan baku akan menghambat produksi the bawang dayak. Tujuan penelitian ini adalah untuk membandingkan manajemen persediaan di UKM D’Baloy Food Industries bawang dayak untuk produksi teh bawang dayak dengan metode Economic Order Quantity (EOQ). Analisis deskriptif untuk menggambarkan manajemen persediaan dayak di UKM D’Baloy Food Industries. Metode EOQ digunakan untuk menganalisis jumlah pesanan optimal dan menghitung frekuensi pembelian optimal. Perhitungan safety stock dan Reorder point juga dilakukan. Hasil penelitian menunjukkan bahwa persediaan bahan baku bawang dayak di UKM D’Baloy Food Industries belum optimal. Biaya persediaan bahan baku saat ini adalah Rp.752.000 dalam setahun, sedangkan biaya persediaan menggunakan metode EOQ adalah Rp.463.448. Jika menggunakan persediaan optimal, maka biaya persediaan bahan bawang dayak yang dapat dihemat oleh D’Baloy Food Industries adalah Rp.288.552. Penghematan biaya dapat jika jumlah setiap pesan ditingkatkan dari 10 kg menjadi 29 kg. Frekuensi pembelian diturunkan dari 96 kali setahun menjadi 33 kali. Untuk menghindari masalah ketidakpastian dalam permintaan dan harga bahan baku, stok pengaman (safety stock) yang harus disediakan D'Baloy adalah 30 kg. Bahan baku dipesan ulang saat stok bawang dayak 38,01 kg. Persediaan maksimum yang harus tersedia sebelum memesan ulang 59 kg. Manajemen persediaan menggunakan metode EOQ lebih menekankan pada ketersediaan stok pengaman dengan alasan untuk mengatasi masalah ketidakpastian dalam permintaan dan fluktuasi harga bahan baku.Kata kunci: bawang dayak, metode Economic Order Quantity, persediaan

Unit-Wise Ranking of Inventory Control Techniques Used in Small Scale Cement Enterprises: A Small Scale Entrepreneurial Perspective

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Vipul Chalotra
Keyword(s):  
Inventory Control ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Small Scale ◽  
Just In Time ◽  
Order Quantity ◽  
Control Techniques ◽  
Material Requirement Planning ◽  
Material Requirement ◽  
Almost All

The present research divulges the different inventory control techniques used small scale cements enterprises operated by small scale entrepreneurs through the assistance of primary data collected from eight small scale cement enterprises operating in SIDCO & SICOP, under DIC (District Industries Center) in District Udhampur of Jammu & Kashmir State. The various inventory control techniques identified and quested for in the research were: Always Better Control (ABC), Economic Order Quantity (EOQ), Material Requirement Planning (MRP), and Just-in-Time (JIT). The results of the ranking table quoted that Economic Order Quantity (EOQ) was awarded first rank by almost all the units representing overall mean score of 1.71, Always Better Control (ABC) was denoted by rank two repressing overall mean value as 2.00, Material Requirement Planning (MRP) was quoted rank three as depicted by its mean ranking (2.25), and Just-in-time (JIT) was accorded rank four (3.71) by almost all the small scale cements entrepreneurs/owners.

scholarly journals THE ANALYSIS OF RAW MATERIAL INVENTORY OF DOHO SUWAR-SUWIR BUSINESS IN JEMBER REGENCY

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Ardhitya Alam Wiguna ◽  
Linda Ekadewi Widyatami
Keyword(s):  
Inventory Management ◽  
Raw Material ◽  
Processed Food ◽  
Order Quantity ◽  
Stock Management ◽  
Safety Stock ◽  
Typical Food ◽  
The Stability ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Doho Suwar-Suwir is a Micro Small Medium Enterprises (UMKM) processing Fermented Cassava (Tape Singkong) to become a processed food in Jember, which is Suwar-Suwir. To maintain the stability of production process, needs a control for the stock management towards the raw material at Doho Suwar-Suwir UMKM. The raw material inventory management at Doho Suwar-Suwir UMKM is about fermented cassava raw material inventory which then are processed to become the typical food of Jember Regency, which is Suwar-Suwir. The goal of this research were to analyze the fermented cassava raw material inventory quantity and to analyze the safety stock quantity at Doho Suwar-Suwir UMKM. The method used in this research was stock management calculation or Economical Order Quantity (EOQ) where the result of this research was the quantity of fermented cassava raw material  needed using Economical Order Quantity (EOQ) method at Doho Suwar-Suwir business was 60,6 kg and the number of the safety stock which must exist was 5,5 kg.

scholarly journals ANALYSIS CONTROL SUPPLIES RAW MATERIALS TO EFFICIENCY COST, USING THE METHOD OF ECONOMIC QUANTITY ORDER AT CV. PQR

2018 ◽  
Vol 1 (01) ◽  
pp. 41
Author(s):  
Wartoyo Hadi
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Analysis Data ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Safety Stock ◽  
Reorder Point ◽  
Efficiency Cost

The purpose of the implementation of this research is to find the effectiveness of supplies raw materials, the method of analysis data used in the square is the smallest trend for planning raw materials and controling supplies use method of economic order quantity (EOQ) analyze reorder point. Analysis reorder point and safety stock. And analyzes efficiency cost of raw materials. Forecasting raw materials years 20x7 according to the smallest trend, cloth and dakron happened the difference is greater than of the target needed (according to a company); controling supplies raw materials with the methods eoq in 20x7 more effective than reservations raw materials cloth and dakron and more efficient than cost raw materials. The company should review the policy of forecasting raw material supplies that had been undertaken and make planning supplies the raw material that more accurate using the firm’s historical data and not only targeting the output production next year, so that machines production can be optimized. Considering the use of control supplies with the methods economic order quantity to companies, so this analysis can determine material reservations, supplies safety, maximum supplies to avoid the risk of running out of raw materials, because the companies often happened less dressed up a result of reservations that time is inaccurate, the lack of safety stock and the deferred the delivery of goods which often disturb the production process, by this method can prevent these things, so that the production process can run smoothly and minimize the cost of raw materials supplies.

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