Traditional inventory control methods generally emphasize minimizing costs. Under current thinking, we not only consider cost control, but also tie inventory management directly into production scheduling. This system...Traditional inventory control methods generally emphasize minimizing costs. Under current thinking, we not only consider cost control, but also tie inventory management directly into production scheduling. This system, called ＂Just-in-Time delivery＂, is based on having inventory arrive at the factory door just as it is needed on the assembly line. This inventory management technique of essential zero raw material inventory speeds inventory turnover rate and greatly reduces holding cost. This paper analyzes and compares all aspects related to both traditional and JIT systems, and explores ways of reducing inventory costs. The result is the elimination of waste, the speed-up of inventory turnover and the increase in productivity, all with the objective of maximizing profitability. Using advanced logistics （physical distribution methods） will enhance the business image, strengthen international competitive ability and contribute greatly to increase gross domestic product.展开更多
文摘Traditional inventory control methods generally emphasize minimizing costs. Under current thinking, we not only consider cost control, but also tie inventory management directly into production scheduling. This system, called ＂Just-in-Time delivery＂, is based on having inventory arrive at the factory door just as it is needed on the assembly line. This inventory management technique of essential zero raw material inventory speeds inventory turnover rate and greatly reduces holding cost. This paper analyzes and compares all aspects related to both traditional and JIT systems, and explores ways of reducing inventory costs. The result is the elimination of waste, the speed-up of inventory turnover and the increase in productivity, all with the objective of maximizing profitability. Using advanced logistics （physical distribution methods） will enhance the business image, strengthen international competitive ability and contribute greatly to increase gross domestic product.
