Benefits of just in time inventory system
Topic A: Inventory Management
In Longenecker (2019) Chapter 21-3, we learned about inventory management. In this discussion, we will identify how an inventory system can benefit a funeral home.
Topic A: Initial Post
Explain the idea of just in time inventory system and how it can benefit a funeral service provider. Post an answer to this question using information from the text, your experiences, or from another quality source. Make sure to use APA formatting to cite your sources. Your written post should be at least 200 words in length or you may make a video response.
Expert Solution
According to Longenecker, Petty, Palich, & Hoy (2019), the just-in-time inventory system is designed to reduce inventory carrying costs by producing or purchasing what is needed just as it is needed. A funeral service provider can benefit from this JIT system in various ways:
- The provider will require less space to store products
- There will be a fast turnaround of stock that will help the provider reduce waste
- The provider will reduce the customer’s waiting time
- He/she will incur less cost in service provision
According to the text, the benefits of just-in-time management surpass cutting in-house inventory and creating a healthier financial position. Quality problems in the funeral home might become evident leading to waste reduction. Storage space, insurance costs, and revolving credit are freed up for other purposes. The ultimate objective of this system is a smooth and balanced system that responds nimbly to market demands…Read more.
Reference
Longnecker, J. G., Petty, W. J., Palich, L. E., & Hoy, F. (2019). Small Business Management: Launching & Growing Entrepreneurial Ventures 19th Edition. Cengage Learning.
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