This document discusses just-in-time (JIT) inventory management. It provides background on the history and evolution of JIT, which originated in post-World War 2 Japan. The objectives of JIT are to reduce non-value added activities and eliminate in-plant inventory and transit times. JIT aims to produce goods with minimal inventories in a highly coordinated process based on customer demand. The document outlines advantages like reduced costs and improved cash flow, as well as disadvantages like risk of disrupted production if supplies are not received.

1. PRESENTATIONOF WORKINGCAPITALMANAGEMENT
PRESENTEDBY-
RINSHISINGh
TOPIC- JUST IN TIME & INVENTORY MANAGEMENT OF BIG
BAZAAR

2. INTRODUCTION
 JIT is manufacturing philosophy involving an
integrated set of procedures/activities designed to
achieve a volume of production using minimal
inventories
 A highly coordinated processing system in which
goods move through system and services are
performed as just they need.

3. HISTORY
 Evolved in Japan after World War 2 as a result of their
diminishing market share in auto industry
 Founded by Taiichi Ohno vice president of Toyota
 Basically implemented in Toyota plant 1950,well
established after 1970

4. FOLLOWERS
 Adopted by General Electrical in the USA in the 1980
 Some companies referred JIT with different names:-
Toyota-Toyota system
IBM-Continuous flow manufacturing
GE-Management by sight
HEWLETT-PACKARD-Stockless production &
repetitive manufacturing system

5. OBJECTIVE OF JIT PURCHASING
 TO reduce all non value added activities
 Elimination of in plant inventory
 Elimination of in plant transit
 Quality & reliability improvements

6. FUNCTIONING OF JIT
 Involves keeping stock level to a minimum
 Stock arrives just in time to be used in production
 Works best where there is a close relationship between
manufacturer & suppliers
 Goods not produced unless firm has an order from a
customer
 Aims to get high level of output at the lower unit cost
 A method of production control
 No demand-No production

7. CONTINUES..
 Anticipated/Planned consumer demand triggers
production
 Finished goods assembled just in time to be sold to the
customer
 Components part assembled just in time to become
finished goods
 Materials purchased just in time to make component
parts

9. ADVANTAGES OF JIT
 Capital not tied up in stocks
 Less space required for stock
 Closer relationship with supplier
 Reduced deteriorations
 Less vulnerability to fashion and technology changes
 Reduced in stock holding costs
 Increased in cash flows

10. DISADVANTAGES OF JIT
 Danger of disrupted production due to non arrival of
supplies
 Danger of lost sales
 High dependence on suppliers
 Less time for quality control on arrival of materials
 Increased ordering & admin cost
 May lose bulk buying discount

23. STRATEGY
 They divided India into 3 categories:-
 India One:-Consuming class which includes upper
middle& lower middle class(14% of India’s population)
 India Two:-Serving class which includes people like drivers,
house-hold helps, office peons etc.(55% of India’s
population )
 India Three:-Struggling class(remaining 31% of India’s
population)

27. Supply chain management at big
bazaar
 Procurement in big bazaar happens from
i. Central distribution center.
ii. Local vendors.
 The stock in the store is managed by automated
replenishment system (ARS).
 The CDS are located in such a strategically positioned
so that it can easily caters to tha nearby big bazaar.
 For the store of eastern zone the CDS is located at
Barasat.

28. Types of inventories maintained..
 Inventories maintained in big bazaar are,
1. Food
2. Staples
3. Apparel
4. Beauty product.
5. Utensils
 Inventory maintenance
1. As depending on the automated replenishment
system.
2. At reorder levels are set based upon previous months.

32. Unexpected demands
 contact nearby big bazaar.
 contact other FBB stores.
 Contact pantaloons.
 They never try to lose the customer and hence provide
them the best help.

33. Perishable goods
 Goods like vegetables are maintained in a shop in shop
format.
 This is not directly maintained by big bazar but
outside vendors.
 The bills are under open MRP which is settled on a
daily bases.