Topic 6 - ICT & Business
Just In Time Stock Control Systems (JIT)
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Welcome to A-level ICT
Just In Time Stock Control System
The main stages in this system after an item has been scanned at the EPOS (Electronic Point of Sale) terminal are as followed:-
• Code matched on stock database.
• One deducted from stock database / Item sold decreases record by 1.
• Checked / matched / compared against reorder level.
• If below level automatic request sent to supplier. (computer generated)
• Stock delivered.
• Stock database updated.
Advantages of JIT
Advantages of JIT
• Smaller storage / warehouses needed as not much stock held
• Store is better able to respond to changing demand
• Easier to cope with several small deliveries (less staff) than 1 big one.
• Do not run out of fast selling items
• Less risk of stock being out of date/waste (NOT no running out of stock)
Disadvantages of JIT
Disadvantages of JIT
• Expensive to introduce/set up
• More admin staff as store responsible for own ordering
• True stock may differ because of theft, wastage, damage, etc.
• Cannot respond to unusual demand
• Disruption to transport
• Communication failure if qualified (not just ‘internet down / internet failure’) e.g. automatic message to supplier to order more stock may not be possible if there are communications problems which could lead to delays to stock being delivered to the store.
• Increased pollution from transport
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