Abstract

A stock out is undesirable for manufacturers because it halts the production process. An inventory is the stock of ideal resources in a firm for future use. Manufacturing organizations typically have raw materials, components, sub-assemblies, tools and equipment’s; semi-finished goods etc., the inventory of an item should not be neither too high nor too less. It should be optimal. The recent development in inventory management is JIT (Just-in-Time). JIT implies handling of inventory in a much disciplined way. It requires changes in culture. It also encompasses the Japanese managerial characteristics i.e., Lifetime employment, implicit control mechanisms, collective decision making, collective responsibility and holistic concern for employees. JIT applies to all functions of a company not just the operations.

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