Page 162 - FM Integrated WorkBook STUDENT 2018-19
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Chapter 8
Inventory management systems
3.1 Periodic review systems
Inventory levels are reviewed at fixed intervals and then topped up to a pre-
determined level.
3.2 Just in time (JIT) systems
JIT is a series of manufacturing and supply chain techniques that aim to
minimise inventory levels and improve customer service by
manufacturing not only at the exact time customers require, but also in
the exact quantities they need and at competitive prices.
In JIT systems the balancing act is dispensed with. Inventory is
reduced to an absolute minimum or eliminated altogether.
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