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An inventory system created by Toyota known as Just in Time has enabled an enormous success for some organizations. Just in Time is an idea that Toyota Motor Corporation founder Eiji Toyoda and Toyota engineer Taiichi Ohno came up with because when asked where parts would be stored due to no warehousing space replied the parts would be at the correct place in the production line at the right time and no sooner.
When organizations manufacture in a facility that contains little warehousing space, it makes it almost impossible to store inventory that is mandatory for production. The JIT theory allows (once workers are aware of how the system works) inventory to be properly ordered as a production run for an item that is needed. This may sound like a simple task but there is a lot more to this process.
Many manufacturers implementing the JIT Software may produce a large number of orders. Each one of these orders needs to be scheduled as appropriated for completion and an on time delivery to the customer. It is then figured what items are need for production, which if any are on hand and what parts are needed to be ordered. Once the information is configured on which items are to be ordered it then has to be figured where they are being ordered from and what methods need to be taken to ensure the product will be delivered and available at the time needed for the production time, no later and no sooner.
