Verified Document

Operations Management Managers How Does JIT And Essay

Operations Management Managers How does JIT and lean processing affect managerial decision-making in that organization?

"JIT is a form of providing supplies for customers, as the name suggests, just in time" as they are needed (Atkinson 2011) Keeping inventories low is a critical component of success for a retail organization like Wal-Mart. Inventories that build up in warehouses must frequently be sold at a loss. Overly well-stocked inventories also take space away from products that consumers actually desire, and can be sold full price. However, inventories of desirable goods cannot be allowed to sink too low, given that if a product is out of stock, consumers will go to another store.

JIT attempts to closely tailor consumer needs to what suppliers have in stock. Wal-Mart has been able to use JIT because of its status as the world's largest retailer. It has tremendous power and leverage with its suppliers. Additionally, what is a 'small order' for Wal-Mart might be very large for another company. "Because of their importance to their...

By lowering ordering costs, Wal-Mart has made ordering small batches with greater frequency a profitable reality" (Atkinson 2011).
For most companies, typically food or technology organizations that have high holding costs for inventory (because of perishability and the dangers of technical obsolescence) and low ordering costs, JIT is ideal. When it adopted JIT, "Wal-Mart didn't even have particularly high holding costs, but they realized it would be profitable to lower ordering costs which led to high holding costs as a ratio of holding costs to ordering costs" (Atkinson 2011). JIT and Wal-Mart's 'lean' processing allows it to keep costs low, pass those cost savings onto customers, and thus retain its status as a company that is able to offer the lowest prices, all of the time.

Question 2: What are the benefits and difficulties does this organization face in implement JIT concepts?…

Sources used in this document:
References

Atkinson, Charles. (2011). McDonald's: A guide to JIT. Inventory Management Review.

Retrieved July 31, 2011 at http://www.inventorymanagementreview.org/justintime/
Cite this Document:
Copy Bibliography Citation

Related Documents

Operations Management Production and Operations Management Is
Words: 2399 Length: 8 Document Type: Term Paper

Operations Management Production and operations management is not an elusive term used to describe some vague concepts; instead it simply refers to management of all the processes and systems that help in the production of goods. As we all know that production requires efficient and organized use of human capital, materials, resources and machines. However all these components of production need to be supervised and they must work in an efficient

Operations Management: Matching Capacity With Demand Operations
Words: 1673 Length: 6 Document Type: Essay

Operations Management: Matching Capacity With Demand OPERATIONS Management: Operations management is the process of managing the business processes efficiently and effectively. It involves the designing, monitoring, and modification of different operations related to business while producing goods or services. The aim behind all operations management strategies is to make it sure that all business processes and operations are efficient enough in terms of resource utilization and use minimum possible resources, at the

Global Operations Management
Words: 2547 Length: 8 Document Type: Term Paper

Global Operations Management: A Discussion When an entrepreneur first launches a company, most of the labor and materials can be covered domestically and in-house. However, as the business expands, it makes more and more sense financially to move the production overseas. For many companies, using a foreign supplier is the answer to absorbing the bulk of the burgeoning sales and administrative expenses. There are both marked benefits in the development of

Managing Projects, Operations and Information
Words: 2210 Length: 8 Document Type: Thesis

The performance of each team member depends on the performance of all others, this being a team project. Constraints include time and financial resources; as such improvement requires permanent improvement effort. Risk Management. No risk has been identified related to the project's completion. Monitoring and Controlling Mechanisms. The data analysts will develop a metric system to measure each member's performance on a weekly basis. This weekly performance will be submitted to

Operations and Materials Management for
Words: 642 Length: 2 Document Type: Research Proposal

Statistical process control (SPC) procedures can help monitor process behavior. A control chart also helps you record data and lets you see when an unusual event, e.g., a very high or low observation compared with "typical" process performance, occurs. Agreeing to have a Total Preventive Maintenance (TPM) approach places the responsibility for routine maintenance on the workers who operate the machinery, rather then employing separate maintenance personnel for that function.

TQM Initiatives at Ford Motors.
Words: 2935 Length: 11 Document Type: Essay

Normally, the designer's direct involvement into the user-research process is noted to be limited. There is however a need for a close collaboration between the researchers and the designers so that the quality attributes that are desired by the clients are adequately included into the final product (Donnelly, 2000). It is therefore clear that for the user's perceptions of quality to be adequately captured and incorporated into the design and production

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now