Just in Time Delivery
Just-in-time is an inventory strategy our client may employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.
This inventory supply system represents a shift away from the older strategy, in which producers carried large inventories in case higher demand had to be met. Maintaining large inventories has a large cost associated with it. With this system, Dev enterprise will take on the burden of maintaining stock, while providing our client with the material required, just as it is required.
This system has many advantages to it. Production runs remain short, which means manufacturers can move from one type of product to another very easily. It reduces costs by eliminating warehouse storage needs. Companies also spend less money on raw materials because they buy just enough to make the products and no more.
Two Bin Inventory Control System
Two-bin inventory control is an inventory control system used to determine when items or materials used in production should be replenished. This system involves the storage of goods in two bins, one of which contains working stock and the other containing reserve stock. The amount of inventory kept in the reserve stock bin equals the amount the company expects to use during the ordering lead time associated with that item. To use this system, goods are reordered as soon as the working stock bin is empty, and replacement parts arrive before the reserve stock bin is empty.
The benefit of two bin system is prevent running out of stock. Hence, reserve bin can be replaced during the lead-time period to meet the demand of the customers. Besides, minimize the risk is one of the advantage using the two-bin system. The company also saves the time and resources used in creating and purchase orders, since all parameters are standard and defined. This system also helps mitigate risk. In case of a disaster such as fire, damage or theft, the business will have the reserve bin to replace the loss of working bin temporarily.