Department
Engineering Management and Systems Engineering
Major
Engineering Management
Research Advisor
Gosavi, Abhijit
Advisor's Department
Engineering Management and Systems Engineering
Abstract
Just in time (JIT) inventory management has become increasingly popular in industry due to its well known benefits. JIT aims to streamline inventory processes by minimizing excess stock, reducing holding costs, and improving operational efficiency overall. This approach introduces inherent risks, by minimizing the safety stock the company becomes more vulnerable to supply chain disruptions. If unexpected circumstances lead to a supply delay, the company will rapidly deplete their supplies and may have to cease operations until they are resupplied, resulting in decreased revenue and leaving customers unfulfilled.This research project will examine case studies of companies that adopted JIT methodology to comprehend the factors influencing its success or failure. The factors that affect the benefits and risks will be discussed, and risk mitigation strategies will be proposed. Computer simulations will be created to collect data on how the benefits and risks of varying inventory sizes result, and to determine the ideal safety stock level to ensure the risks do not outweigh the rewards. It is crucial to first understand the benefits, risks, and influencing factors before implementing JIT inventory management, or any process change so that the potential benefits can be maximized, and the risks are accounted for and mitigated. This research aims to produce insights that will benefit organizations considering JIT inventory management.
Biography
Ian Hodge is a senior in Engineering Management with an emphasis in Industrial Engineering and a minor in Psychology. He intends to graduate in May of 2024 as an Honors Academy Fellow. He has held two internships so far. The first internship was working for Distribution Management as a Supply Chain Intern. After this internship, Ian developed a strong interest in how business operations can be improved and made more efficient. His second internship was working as a Supply Chain Intern at a PepsiCo manufacturing facility in St. Louis. Ian will be working full time as a Supply Chain Campus Hire for PepsiCo after his graduation.
Research Category
Engineering
Presentation Type
Poster Presentation
Document Type
Presentation
Location
Innovation Forum - 1st Floor Innovation Lab
Presentation Date
10 April 2024, 1:00 pm - 4:00 pm
Analysis of The Benefits and Risks Of Just in Time Inventory Management
Innovation Forum - 1st Floor Innovation Lab
Just in time (JIT) inventory management has become increasingly popular in industry due to its well known benefits. JIT aims to streamline inventory processes by minimizing excess stock, reducing holding costs, and improving operational efficiency overall. This approach introduces inherent risks, by minimizing the safety stock the company becomes more vulnerable to supply chain disruptions. If unexpected circumstances lead to a supply delay, the company will rapidly deplete their supplies and may have to cease operations until they are resupplied, resulting in decreased revenue and leaving customers unfulfilled.This research project will examine case studies of companies that adopted JIT methodology to comprehend the factors influencing its success or failure. The factors that affect the benefits and risks will be discussed, and risk mitigation strategies will be proposed. Computer simulations will be created to collect data on how the benefits and risks of varying inventory sizes result, and to determine the ideal safety stock level to ensure the risks do not outweigh the rewards. It is crucial to first understand the benefits, risks, and influencing factors before implementing JIT inventory management, or any process change so that the potential benefits can be maximized, and the risks are accounted for and mitigated. This research aims to produce insights that will benefit organizations considering JIT inventory management.
