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Just in time (How does it work? (Delivers as fast as products are sold,…
Just in time
How does it work?
Delivers as fast as products are sold
item is decreased by 1 each time an item is sold
Checked against reorder level
Automatic request to supplier once below this level
Stock is delivered
Advantages
Dont need a warehouse to store the stock
More able to adapt to demand
Easier to cope with small deliveries
Dont run out of fast selling items
Less risk of out-of-date
Disadvantages
Expensive to introduce
More staff needed
Cant respond to unusual demand
distruption to transport
What is it?
Delivers as fast as stock sells
at least 2-3 deliveries per week