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In general I would recommend in time purchasing ... since the computer technology lets you chose a good ERP system like the AS400 which has a MRP program which flags a buyer to purchase a commodity and when it has to arrive ...... but keep in mind every system has it's occasional glitches ... a good buyer which has access to the inventory on the manufacturing floor, checks its inventory and orders early to receive the commodity a day or two ahead of the needed production schedule ...
So the question is remaining ... is it more efficient to have the stock on hand or having to shut down production because of a glitch?
Based on your company strategy and your purchasing scheme , because in case of import you don't guarantee lead time conditions , maybe delay in customs or transit time or supplier sudden problem in production will be negative affect on your business , so this depend on alot of factors
depends on the type of product, trends of rates falling/rising, demand and supply. Purchase the Right Quantities. Your ongoing inventory count can help guide the decision.
If there is mass production and regularly being produce I dont recomment "Just in Time Purchasing" otherwise I agree on it.
Generally JIT purchase is entertained only when there is a reducing cost impact. But it may result in shortage in inventory and some times based on the market demand during that instance for the particular item it may not serve the purpose itself.
Its advisable for fast moving items with high inventory turnover ratio.
Not really. It depends on the type of product, trends of rates falling/rising, projected business environment in terms of demand and supply, etc. Most business decsions are infact dynamic in nature and need to take into account all prevailing factors at a given point of time.
Just-in-time purchasing (JIT purchasing) is a cost accounting purchasingstrategy. You purchase goods so that they're delivered just as they're needed to meet customer demand. With JIT, when you get customer orders, you planpurchases. You purchase the minimum number of items to meet customer demand.I would recommend it to ensure clients specification are met ,thus,client rention and boost the company client rating.
Yes, knowing we are using fat faced technology nowadays.
We can still deliver with a high performance using SAP system and other engineered technologies. Thiis is the easiest way we can have a good cost savings.
yes to consider its strong impact on reducing cost
Any products being shipped from a country like US or UK or any European country by SEA would be recommended to place the order 3 months in advance considering the lead time and clearence for arriving into the destination market..
