Just-In-Time Inventory
The textile industry in the United States has moved much of its operations offshore in an effort to decrease labor costs. Over the past 50 years textile imports have risen from 2% of all textile production to over 70%. Offshore manufacturers ship apparel items in container ships requiring significant time between original order and delivery. As a result, retail customers must accurately forecast market demands for imported apparel items. Assuming your company requires a just-in-time strategy, how would you handle the low-cost imports?
Submission Instructions:
Your initial post should be 200-300 words, formatted and cited in current APA style.
You should respond to at least two of your peers by extending, refuting/correcting, or adding additional nuance to their posts.
Classmate 1 post
Good evening class,
In this discussion we are given the opportunity to run a textile company that adopts a just-in-time strategy to deliver its goods and meet market demands. We need to figure out how to handle the imports to meet demand. The first part of this is to understand what it means to adopt a just-in-time strategy? It is defined as an inventory strategy in which materials are only ordered and received as they are needed in the production process with the goal of reducing costs through overhead inventory expenses (Hunt, n.d.). The main focus is to increase the efficiency of its operations and it’s done by cross-training workers in other jobs. This has many advantages for the company with the highest is the cost savings. Another advantage is a very low inventory storage, which is also related to cost.
One way to ensure most orders arrive on time is to allow a very limited supply of these raw products while orders are being placed so not to slow the delivery of the product. Another idea is to have different ways of transportation of raw materials for example, train, ship, airplane, and even trucks. It is also important to note that these systems can always be fined tune to work even more efficiently.
References
Hunt, Janet (n.d.). Chron. Retrieved from: https://smallbusiness.chron.com/justintime-method-31185.html (Links to an external site.)
Warren, Carl (2018). Survey of Accounting (8e). Cengage Learning.
Post by classmate 2
JUST IN TIME STRATEGY
Since most American companies have moved their textile operation and production offshore and the textile materials take a long time to be shipped into the United States and delivered to customer following their orders. This presents an opportunity for my company to produce smaller quantities and deliver much faster to customers in the U.S who will be happy to have their waiting time reduced. Following a just in time strategy the company will produce goods with high quality, low cost and instant availability. The JIT system increases the efficiency of operations by eliminating waste and simplifying the production process. By having work centers in this system, several functions are added in one center where a worker is cross-trained to perform more than one option. At the same time, work centers are assigned with several responsibilities such as maintenance of its machinery and equipment, that way workers can take better care of the machinery which decreases repairs and reduces machine downtime and improves product quality. The product is always pulled through production within the different work centers in order to complete the activities just in time to satisfy the demand. This process will definitely satisfy the needs of customers rapidly and will give the chance to not waste material by having extra inventory not needed or requested by customers.
REFERENCE
Warren, Carl (2018)Survey of Accounting. Accounting systems for manufacturing operations. Pages 426-427
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