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Essay / Inventory Control Case Study - 1342
With this control technique, additional inventory is ordered when the current inventory has reached a specific level. For example, a small business considers a minimum inventory level of 30 units on an item that sells an average of 80 units every four days. When inventory reaches 30 units at the end of the second day, the company orders additional stock (Dolinsky, 2010). One of the most well-known systems for overseeing inventory in companies in the manufacturing environment is just-in-time inventory control, or JIT. JIT continues to distribute inventory to the production line just in time for use. The JIT technique transmits only the defined quantities necessary to achieve the current production target; neither more nor less. JIT inventory control relies heavily on the ability of commercial suppliers to transport on demand. In most manufacturing environments, companies take advantage of JIT delivery, the supplier has a warehouse very close to the manufacturing area (Whitin,