We are going to talk about Personal computer Factory, a Chilean company dedicated to the

production and sale of desktop computers.

the inventory method chosen by the company is just-in-time;

The objective of the method is that raw material supplies are used in a timely manner in the
production process and that the finished product reaches the customer just in time without the
need to store the product, Increased inventory turnover, Savings in production costs, Reduced
material losses and Less storage space.

Advantages :

- Reduces the levels of inventories required in all steps of the production line.
- Minimizes losses due to obsolete supplies.
- Development of a closer relationship with suppliers.
- It makes it easier to agree on purchases during the year, which will allow suppliers to plan
better and offer better prices.

Disadvantages;

- delays due to lack of supplies, which can break the production line and negatively impact
expenses.
- if purchases are in low quantities the price reduction depends on the relationship with the
supplier.
- Switching cost increases (costo de cambiar de proveedor)