The use of computers and JIT (Just-In-Time) inventory strategies has enabled SCM
ID: 437132 • Letter: T
Question
The use of computers and JIT (Just-In-Time) inventory strategies has enabled SCM (Supply Chain Management) Systems to minimize WIP (Work-In-Process) inventories. Using such systems, companies tend to order parts, components and supplies from a single vendor and expect the parts, components and supplies to arrive as needed. However, such Pull-Systems leave a company very vulnerable to disruptions in the supply chain.
1. Discuss this approach to Inventory control and ways to mitigate disruptions in the supply chain.
Explanation / Answer
Just in time (JIT) inventory is a management system in which materials or products are produced or acquired only as demand requires. This approach to managing inventory has become increasingly popular in the early 21st century as suppliers and retailers collaborate to try to control inventory costs while still meeting customer demands
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