Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
Any ERP implementation attracts expenditure on account of Operating System (OS) and Relational Database Management (RDBMS) for hosting the system. Networking issues also assumes importance particularly when the system is rolled out at different locations. Additionally, licensing options associated with ERP packages need to be carefully evaluated during final contract negotiation. Operating System and Database […]
Logistics has aided and contributed to enabling global trade. Third Party Logistics Service Providers both at global levels and local levels form major partners to manage and offer Supply Chain services and the second major factor being the Internet and IT technology that helps manage information and data ahead of or along with flow of […]
Business Process Improvement Projects have become a common tool for Organizations to help review their business operational processes from time to time and to bring about necessary improvements. Organizations as well as their processes as well as their markets, customers and products keep changing. In current times, technology is playing vital role in the way […]
For any Business Organization which is eyeing a foreign market as a part of its Exports strategy, getting its Marketing and Supply chain in place forms a critical part of the initial process which will determine his initial foray into the markets. While doing business in foreign markets is very lucrative, the initial cost of […]
The Stratification of the Indian Education Sector For a country that prides itself on its rich history and civilization superiority, the present state of its Education Sector is nothing to feel proud about. Indeed, barring for graduates from the prestigious IITs, IIMs, and other institutes at the top of the heap, the rest of the […]
Supply-chain management plays a pivotal role in ensuring goods, and services are delivered on time to customers. Within supply-chain management, inventory management plays a central role. Inventory involves various cost, investment, space management, etc. Also there are chances that stored inventory may get damaged or get stolen adding to extra cost to the company. Therefore, it is important to have a robust inventory management for an organization.
For an organization, it becomes important to hold inventory for the following reason:
Considering the above inventory holding objectives, next step for the company is to make inventory related decision. Inventory decision involves two major considerations, first is the order quantity of the raw material and second is timing for placing those orders.
Inventory management is based upon two basic models i.e independent demand inventory model and dependent demand inventory model.
There are three broad categories of cost associated with inventory; holding cost, ordering cost and set up cost.
Inventory management ensures that organizations are able to minimize cost and maximize profit.
Just In Time is set of strategic activities, which are formulated to achieve maximum production with minimal maintenance of inventory. JIT as philosophy is applicable to various types of organization but on implement side it is more relevant with manufacturing operations.
For JIT system to be successful, there are two critical elements, attitude of workers/management and practice.
JIT is based on the following fundamentals:
With the above fundamentals in place, JIT delivers the following:
Your email address will not be published. Required fields are marked *