A PROJECT ON E - COMMERCE

Topic – JIT
SubmittedDate – 19th
vs. Min maxto – ProfOctober
approach
Max D’costa 2010

NAME ROLL NO
Vikesh Patel 173
Richa Chugh
Varun Awtani 168
Saifuddin Lokhandwala
Sneha Shriyan
JIT APPROACH
 Just-in-time (JIT) is an inventory strategy that strives to improve a
business's return on investment by reducing in-process inventory and
associated carrying costs.

 Approach –
 The company uses business credit to finance the purchase of their inventory.
 The company makes sure that any product purchased is immediately shipped out to
customers or used in production.

 Salient Features
 a: It encourages businesses to eliminate inventory and have healthy cash flow
 b: Generally the company takes a credit of 30 days and tries to sell in the same time
 c: It helps company to order what is guaranteed to be sold/shipped

 Example:
 Toyota, Dell & Harley Davidson use JIT in Manufacturing by keeping the inventory
low.
MIN – MAX APPROACH
 Min-max is a decision rule used in decision theory, game
theory, statistics and philosophy for minimizing the loss & maximizing gain 

 Approach –
 Min/Max is based on a minimum and maximum amount of inventory, hence the
term Min/Max. It helps in defining the “safety stock” to protect against inventory.
 Having the inventory ready at a moments notice, allows the company to service
customers immediately.

 Salient Features
 a: Generally done during random demands
 b: Has lesser freight cost but more inventory cost
 c: A level of minimum inventory level maintained
 PRO'S AND CON'S
JIT MIN – MAX
●
Less Inventory ●
Has a safety margin
●
Improves cash flow ●
Service customers fast
●
Eliminates damage to ●
Lesser freight cost
outdates goods

ADVANTAGES ADVANTAGES

DIS DIS
-ADVANTAGES -ADVANTAGES

●
Defective Products
●
High freight cost ●
Expensive
●
Open to supply- demand ●
Risk of damage
shocks ●
Outdated Inventory
●
Requires work force
AND THE WINNER IS!!!!!
 Both!!!! Depending on the business plan, the system of inventory management
has to change.
 JIT
 Suitable to large corporations with high purchasing volumes & high volume of
demand
 Companies with highly skilled labor, and Linear constant demand for product
 Product categories using JIT – Automotive, Computers & IT, Heavy machinery

 MIN – MAX
 Suitable for companies / product categories having cyclic demand
 Companies with stable cash flows
 Product categories using MIN-MAX – FMCG goods, Food and Beverages, Seasonal
products like sweaters, umbrellas