The JIT Method Of Inventory Cost Control In Manufacturing Enterprises

The inventory is huge investment for manufacturing enterprises, therefore, to control inventory cost plays an important role in corporation management. OP (Order Point) is a traditional measure to control the inventory. However, it is based on high stock quantity which makes it difficult to implement further control. Fortunately, JIT can make up this shortage.The key idea of JIT (Just In Time) is "no need, no production". JIT inventory is the application extension and requirement of JIT production with the characters of small- batches supply and low even zero stock.With the benefit to enterprises, JIT inventory should be carried out the following research: The enactment of safety stock on the condition of indetermination need and supply breakdown; The rationality of small-batched supply; The enactment of economic order quantity based on random need; The balance of lead time of various stocks.Focusing on the above-mentioned problems, in the dissertation, the methods of inventory cost optimization has been worked out by the research of quantitative analysis with relevant validity demonstration which is significant to perfect JIT theory and guide JIT practice. The main content of the dissertation contains:Based on Newboy model, introducing indetermination factors caused by supply breakdown; analyzing expectation value of supply products out of stock on the condition of random need, partly being out of stock caused by supply breakdown; balancing storage cost and cost out of stock and building up the optimization model on safety stock.Introducing logistics cost factor in the Basic EOQ model, analyzing economic order quantity respectively with foreign and local industrial park supply and eventually drawing the following conclusion: â‘ The small-batches of industrial park supply is an economic order quantity. â‘¡Industrial park supply can solve the problem of noneconomic logistic scale caused by small-batches supply.Extending as well classical EOQ model under the condition that demand obeysexponent distribution and normal distribution to acquire economic order quantity with JIT method.Analyzing and demonstrating the below conclusion: inventory cost of supply chain would be not the lowest if only a non- critical path exists in lead time network program. Proposing an optimization method of inventory cost by scheduling rationally time resource in all working sectors of supply chain under the condition of determinate and indeterminate lead time.Finally, giving the demonstration by applying the research result to an actual inventory object.