Thursday 15 September 2011

Advantages of JIT inventory System

Advantages of JIT inventory System

The Just in time inventory system focus to order inventory when it is required.This system has number of advantages which includes the following

Holding Cost is Reduced
The main advantage is the holding cost which includes ware house cost, insurance cost etc are reduced.
Risk of physical Damage Reduced
There are number of physical risk attached to inventory such as fire , earthquake . with introduction of this system these risks are reduced.
Better Control over inventory
This system improves organization control over the inventory.

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