just in time inventory systems journal article

This is an exploratory research project facilitated via the case study method. The use of information technology to control the value chain cycle is crucial in the electronic industry, since it requires effective and efficient inventory control to speed up production and cut down inventory cost.

Therefore, the merging of JIT with EDI has brought unprecedented benefits to users, especially with the increase in the use of international sourcing. Additionally, the use of electronic commerce was able to cut down the lead time of purchasing and speed up inventory turnover to achieve just-in-time inventory management. Therefore, the chances of errors, time spent on auditing, and tracing errors are all significantly decreased. Thus, the processing and handling of paper and input of data are eliminated with no rekeying of data. When the exchange of information is electronic the transactions are instantaneous. There are many advantages to using EDI transaction over a traditional paper exchange environment. The information transmitted in manufacturing includes purchase orders, shipping and freight invoices, and bills of lading.

(EDI) is the electronic exchange of information, documents and business transactions between computers. JIT inventory management eliminates waste which includes all material, equipment, inventories and labor since JIT requires the production of just the right quantities and results in elimination of waste. This paper compares the firm merging Electronic Data Interchange (EDI) with just-in-time (JIT) inventory management, to the firm with traditional inventory methods for the purpose of deter-mining the impact of both methods on reducing inventory cost.

Just in time inventory systems journal article