JIT in NO?

[imported_Condor]

It is the standard in the civilized wortld to use Just In Time Inventory to make products avaliable to the masses these days. It consolidates warehousing and keeps FEDEX and UPS profitable, but has this management technique allowed us to lose billions in commodities in ruined warehouses in New Orleans?

Related topic:
I've noticed fires all over New Orleans. Everyone knows that these things happen in emergancies, but the number in New Orleans seems excessive, beyond the statistical norm. Warehouse fires on the docks raise the question: If everyone knows that insurance doesn't cover raising water damage, are some making their part of the disaster fit more comfortably into the insurance guidelines? In particular in the cases of warehouses with millions of dollars in contents?

Don't start a flame war (except for Conjur and TLC, of course) but just mexercize the mind a little in areas of economics, not politics.

 

[Darkhawk28]

I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

 

[Genx87]

Originally posted by: Darkhawk28
I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

Theory that you hold little to no inventory and order what you need just in time to produce and deliver your product. Dell has made a killing using a very well designed JIT system.

 

[imported_Condor]

Originally posted by: Darkhawk28
I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

Here is a pretty good basic thing on JIT: JIT

My issue with it is that JIT prevents the distributed holding of commodities and puts large inventories at risk.

 

[Engineer]

Originally posted by: Genx87

Originally posted by: Darkhawk28
I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

Theory that you hold little to no inventory and order what you need just in time to produce and deliver your product. Dell has made a killing using a very well designed JIT system.

The system has become more and more widespread in the last 20 years. Many automotive companies, including mine, have adopted it more and more over the years. Toyota receives shipments every hour or two for many products. Many of those companies don't have an inventory at all. Products are made and placed on the truck very quickly.

We (my company) used to keep weeks worth of product on the shelf. No more.

 

[Darkhawk28]

Originally posted by: Condor

Originally posted by: Darkhawk28
I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

Here is a pretty good basic thing on JIT: JIT

My issue with it is that JIT prevents the distributed holding of commodities and puts large inventories at risk.

Doesn't Wal-Mart use this type of system as well? I know they're very, very demanding of their vendors, requiring next-day delivery to fill shelves.

 

[Genx87]

Originally posted by: Engineer

Originally posted by: Genx87

Originally posted by: Darkhawk28
I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

Theory that you hold little to no inventory and order what you need just in time to produce and deliver your product. Dell has made a killing using a very well designed JIT system.

The system has become more and more widespread in the last 20 years. Many automotive companies, including mine, have adopted it more and more over the years. Toyota receives shipments every hour or two for many products. Many of those companies don't have an inventory at all. Products are made and placed on the truck very quickly.

We (my company) used to keep weeks worth of product on the shelf. No more.

Great system provided your suppliers can supply you on time

 

[Engineer]

Originally posted by: Genx87

Originally posted by: Engineer

Originally posted by: Genx87

Originally posted by: Darkhawk28
I'm not familiar with the "Just in Time Inventory" term, but I'm sure some companies created fires to make insurance claims.

Theory that you hold little to no inventory and order what you need just in time to produce and deliver your product. Dell has made a killing using a very well designed JIT system.

The system has become more and more widespread in the last 20 years. Many automotive companies, including mine, have adopted it more and more over the years. Toyota receives shipments every hour or two for many products. Many of those companies don't have an inventory at all. Products are made and placed on the truck very quickly.

We (my company) used to keep weeks worth of product on the shelf. No more.

Great system provided your suppliers can supply you on time

Very true. One kink in the chain causes the whole anchor to break off!