[PRESENTASI] TEKNIK PERSEDIAAN METODE JIT (JUST IN TIME) DAN EOQ (ECONOMIC ORDER QUANTITY)

Summary

This video discusses two key inventory management strategies: Just in Time (JIT) and Economic Order Quantity (EOQ). JIT focuses on reducing waste by ordering materials only when needed, optimizing production efficiency and reducing storage costs, but it can be challenging to implement and is vulnerable to supply chain disruptions. EOQ, on the other hand, calculates the optimal order quantity to minimize total inventory costs, helping businesses manage inventory efficiently and avoid stockouts. While it simplifies inventory control, EOQ assumes constant demand and may overlook bulk discount opportunities, making it less adaptable in some cases.

Takeaways

• 😀 Just in Time (JIT) is a production strategy that aims to reduce waste and increase efficiency by ordering materials only when needed.
• 😀 One of the key benefits of JIT is the reduction of waiting times and production delays, optimizing the overall production schedule.
• 😀 JIT helps companies avoid excess inventory and reduce storage costs by not holding unnecessary stock.
• 😀 By using JIT, companies can minimize resource waste by using only the necessary amount of raw materials in production.
• 😀 JIT fosters strong supplier relationships, as it relies on suppliers delivering materials on time and in good quality.
• 😀 JIT improves the usage of machines and facilities by ensuring they are used at full capacity and are adaptable to different production orders.
• 😀 A major drawback of JIT is the difficulty in implementation, as it requires significant adjustments to internal processes and external factors.
• 😀 JIT can increase pressure on workers because the reduced stock forces them to work with fewer materials and adhere to stricter procedures.
• 😀 JIT exposes companies to risks such as stockouts or production halts if there are disruptions in the supply chain or demand spikes.
• 😀 Economic Order Quantity (EOQ) is a formula that calculates the optimal order size to minimize total inventory costs, balancing ordering and holding costs.
• 😀 The primary advantage of EOQ is that it helps minimize inventory costs, ensuring businesses don’t over-order or under-order stock.
• 😀 EOQ helps companies maintain adequate stock levels, reducing the risk of stockouts and improving operational efficiency.
• 😀 EOQ can improve cash flow by reducing unnecessary inventory and freeing up resources for other operational needs.
• 😀 EOQ assumes stable demand for products, which may not reflect the actual market conditions, especially in industries with fluctuating demand.
• 😀 EOQ does not account for potential bulk purchase discounts, which could allow businesses to lower their ordering costs further.
• 😀 Although the EOQ formula is simple, its implementation requires accurate data on various costs, which can be complex to maintain over time.

Q & A

What is Just in Time (JIT) inventory management?

Just in Time (JIT) is an inventory management strategy that aims to increase efficiency by ordering raw materials only when needed, minimizing excess stock and reducing waste.

What is the main advantage of JIT regarding production schedules?

The main advantage of JIT is the reduction of waiting time in the production process by optimizing production schedules, ensuring that materials are available only when required.

How does JIT help in inventory management?

JIT helps by reducing unnecessary inventory, minimizing storage costs, and optimizing warehouse space for other purposes, thus improving the overall efficiency of inventory management.

What is a potential risk associated with JIT in terms of supply chain disruptions?

A significant risk of JIT is that minimal inventory can cause production halts if there are disruptions in the supply chain, such as factory shutdowns or unforeseen demand surges.

How does JIT improve relations with suppliers?

JIT requires a reliable and timely delivery of raw materials, which fosters stronger relationships between companies and suppliers due to the need for consistent quality and punctuality.

What does the Economic Order Quantity (EOQ) method focus on?

The Economic Order Quantity (EOQ) method focuses on determining the optimal order quantity that minimizes the total cost of inventory, including ordering, storage, and stockout costs.

What are the key advantages of using EOQ for inventory management?

EOQ helps minimize inventory costs, reduces the risk of stockouts by ensuring enough inventory is on hand, and improves operational efficiency by avoiding overstock or understock situations.

What assumption does EOQ make regarding demand?

EOQ assumes that demand for the product is constant and predictable over time, though in reality, demand may fluctuate due to market changes, seasonality, or other factors.

What is a limitation of EOQ in terms of cost variability?

EOQ assumes fixed costs for ordering and storage, but in practice, these costs can vary due to factors such as price changes in materials, inflation, and changes in shipping costs.

How does JIT address resource utilization?

JIT ensures that production resources, such as machines and facilities, are used efficiently and at full capacity by scheduling production only when necessary and minimizing idle time.