Just-In-Time Manufacturing, Case Study Example

Defining Terms

To: HR Manufacturing

From: John

Date: February 23, 2013

Subject: Just-in-Time Manufacturing

This memo attempts to define some of the commonly-used concepts in logistics to help you be better prepared for our incoming seminar on Just-in-Time manufacturing. The concepts defined in this memo are Just-in-Time (JIT) Manufacturing, Inbound Carriers, Management of Inventories, and Inbound Logistics.

JIT Manufacturing is a system designed to improve operating efficiency as well as profitability by ordering inventories only on as-needed basis so that storage space and costs could be minimized and even eliminated if possible. One of the major requirements of JIT Manufacturing is reliable relationship with the suppliers so that they can deliver inventory anytime the organization may need it. JIT doesn’t only improve profitability but also liquidity. Inbound Carriers are agents of manufacturers or sellers that receive supplies from suppliers and transport them to their clients. The opposite of Inbound Carriers are Outbound Carriers who transport finished goods to distribution intermediaries.

Management of Inventories refers to the entire set of activities concerning inventory stock including planning inventory, ordering inventory, storing inventory, directing inventory to their intended use, and managing relationship with inventory suppliers. Inbound Logistics refers to the set of activities undertaken by the buyer following the purchase of supplies such as receiving and storing materials as well as directing them to their intended use.

I hope this information will be helpful in regard to the preparation for the incoming seminar. Understanding these concepts will enable you to better grasp the information presented at the seminar. Please let me know if you have any questions.