Inventory Systems Summary
Inventory Systems Summary: Learning Team A
Michelle Grace, Scot Breland, Marie J. Charles, and Nate Kirkland
QRB/501 Quantitative Reasoning for Business
1 July 2010
Dr. Robert Kalle Inventory Systems Summary: Learning Team A
Learning Team A met to discuss details of the assignment to analyze, compare, and contrast four inventory systems in preparation for future assignments (Breland, Charles, Grace, & Kirkland). The analysis presented describes four inventory systems as described and analyzed by each team member. Also included in the inventory systems analysis are four comparisons presenting the advantages and disadvantages of each inventory system with an overall ranking provided in summary. Learning team interactions via team meeting and daily communications and research conducted from various sources provide the foundation for the analysis and recommendations.
Inventory Systems
Inventory System One: Just-In-Time
Description. Just-In-Time (JIT) is an inventory system that companies use to deliver a finished product to customers in the quickest time possible to reduce the overall ordering and inventory holding cost (Atkinson, 2005). The system proves to be most effective for companies that lose money for holding a product in its inventory for an extended period of time and that have the capability of lowering its ordering cost to make to profit.
Advantages. Dell computers are a prime example of how using JIT reduced cost and improved the overall performance of their company. According to Atkinson, a computer loses value at a fast rate as it sits in inventory; therefore it is financially smart to supply customers with products as they are ordered. For every computer that sits in Dell warehouse over a span of seven days, one percent of its value is lost (Atkinson, 2005). To show how low inventory saved Dell money overtime a case study was conducted. According to Atkinson, ten years of data was pulled from www.themanufacturer.com that
Michelle Grace, Scot Breland, Marie J. Charles, and Nate Kirkland
QRB/501 Quantitative Reasoning for Business
1 July 2010
Dr. Robert Kalle Inventory Systems Summary: Learning Team A
Learning Team A met to discuss details of the assignment to analyze, compare, and contrast four inventory systems in preparation for future assignments (Breland, Charles, Grace, & Kirkland). The analysis presented describes four inventory systems as described and analyzed by each team member. Also included in the inventory systems analysis are four comparisons presenting the advantages and disadvantages of each inventory system with an overall ranking provided in summary. Learning team interactions via team meeting and daily communications and research conducted from various sources provide the foundation for the analysis and recommendations.
Inventory Systems
Inventory System One: Just-In-Time
Description. Just-In-Time (JIT) is an inventory system that companies use to deliver a finished product to customers in the quickest time possible to reduce the overall ordering and inventory holding cost (Atkinson, 2005). The system proves to be most effective for companies that lose money for holding a product in its inventory for an extended period of time and that have the capability of lowering its ordering cost to make to profit.
Advantages. Dell computers are a prime example of how using JIT reduced cost and improved the overall performance of their company. According to Atkinson, a computer loses value at a fast rate as it sits in inventory; therefore it is financially smart to supply customers with products as they are ordered. For every computer that sits in Dell warehouse over a span of seven days, one percent of its value is lost (Atkinson, 2005). To show how low inventory saved Dell money overtime a case study was conducted. According to Atkinson, ten years of data was pulled from www.themanufacturer.com that
References: Atkinson, C. (2005). Inventory Management Review. Retrieved 28 June 2010 from https://www.inventorymanagementreview.org/justintime/ Author, UN. (2010). Observing physical inventory. Retrieved on June 27, 2010 from http://rossfuerman.com/Documents/Supplement%20for%20ch.%204%20re%20confirmat ions%20and%20observing%20inventory.PDF Beard, L., & Butler, S. (2000). Introducing JIT Manufacturing: It 's Easier Than You Think. Business Horizons, 43(5), 61. Retrieved from Business Source Complete database. Breland, S., Charles, M., Grace, M., & Kirkland, N., (June, 2010). Inventory Systems Summary, [Student Outline]. Learning Team Meeting. Meeting conducted at the University of Phoenix, Temple Terrace, Fl campus. Dey-Chowdhury, S. (2008). Perpetual inventory method .Economic & Labour Market Review. Retrieved 27 2010 from http://ehis.ebscohost.com/ehost FIFO. Bloomsbury Business Library - Business & Management Dictionary [serial online]. January 2007;:3064. Available from: Business Source Complete, Ipswich, MA. Accessed June 29, 2010. Murray, Martin. (2010). Logistics/Supply Chain Vendor Managed Inventory (VMI). About.com. Retrieved 28 June 2010 from http://logistics.about.com/od/forsmallbusinesses/a/VMI. htm?p=1