PRESENTATION ON :
1) JUST IN TIME ANALYSIS.
2) PERIODIC STOCK TAKING SYSTEM.
3) INVENTORY TURN TAKING
SYSTEM
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Accounting - 123 just in time method, Study notes of Accounting
1) JUST IN TIME ANALYSIS. 2) PERIODIC STOCK TAKING SYSTEM. 3) INVENTORY TURN TAKING SYSTEM.
Typology: Study notes
2010/2011
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PRESENTATION ON :
1) JUST IN TIME ANALYSIS.
2) PERIODIC STOCK TAKING SYSTEM.
3) INVENTORY TURN TAKING
SYSTEM
1) JUST IN TIME ANALYSIS.
2) PERIODIC STOCK TAKING SYSTEM.
3) INVENTORY TURN TAKING SYSTEM
HISTORY
• FIRST USED BY FORD MOTERS COMPANY BY
HENRY FORD.
• TOYOTA MOTOR CORPORATION JAPAN.
PHILOSOPHY
- (^) TRANSACTION COST APPROACH. IT REDUCES INVENTORY IN A FIRM.
- (^) PRICE VOLATILATY. ASSUMES A LEVEL OFINPUT PRICE STABILITY THAT OBVIATES THE NEED TO BUY PART IN ADVANCE OF PRICE RISES.
- (^) QUALITY VOLATILATY. ASSUMES QUALITY THAT INPUT PART QUALITY REMAINHS CONSTANT OVER TIME.
- (^) DEMAND STABILITY. IT HELPS IN ENSURING EFFICIENT CAPITAL UTILIZING RATES.
BUSINESS MODELS
- (^) VENDOR MANAGED INVENTORY
- (^) CUSTOMER MANAGED INVENTORY
PERIODIC STOCK TAKING SYSTEM
- (^) Under this method the value of stock is ascertained
by physical counting of the stock at the end of a
particular period, usually once in a year. It is a simple
and economical method of stock taking and can be
adopted by small concerns.
Inventory turns
- (^) In business management, inventory turns often referred to as stockturn , stock turns , turns , and stock turnover.
- (^) This measures the number of times invested in goods to be sold or used over in a year.
The Concept of Inventory Turnover Annual Cost of Goods Sold (Rs) Inventory Investment(Rs) Annual Inventory Turns 10,000 10,000 1 10,000 5,000 2 10,000 2,500 4