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inventory - Coggle Diagram
inventory
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why we hold
Raw materials and components for productions, it is held so production can process quickly.
Work in progress is held when production process will be converting the raw materials into finished goods
finished goods are also stored as inventories as the goods might be stored until sold and dispatched by customers.
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inventory management
JIT inventory management
Components and other supplies arrive just as they are needed on the production line. Finished goods are delivered to customers as soon as they are completed.
advantages
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greater flexibility needed for JIT leads to quicker response times to changes in consumer demand or tastes.
disadvantages
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failure to receive supplies of materials or components in time will lead to expensive production delays.
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