Global Journal of Management and Business Research, E: Marketing, Volume 22 Issue 3

The JIT method is an inventory strategy where materials are only ordered and received as they are needed in the production process. The goal of this method is to reduce costs by saving money on overhead inventory expenses. This allows the auto company to save on storing inventory and reduce waste. A JIT strategy eliminates overproduction, which happens when the supply of an item in the market exceeds demand and leads to an accumulation of unsalable inventories. These unsalable products turn into inventory dead stock, which increases waste and consumes inventory space. c) The Wilsons Model for Inventory Management by Rh Wilson (1934) The Wilsons Model also known as the EOQ (Economic Order Quantity) system is a very widely used stock management model to reduce inventory costs in a warehouse. It is one of the simplest stock management models to implement which is why it is so widely used. It focuses on calculating the appropriate quantity of each product or raw material order of a company to reduce its inventory costs to a minimum. This model became popular in 1934 with the publication of an article by R.H. Wilson, after whom the model is named, but it was developed originally by the engineer Ford Whitman Harris when he worked in the company Westinghouse corporation. The model was created with the clear objective of systematising the goods that are periodically held in the warehouse and defining the quantity and date on which orders must be placed with suppliers. Although this system is commonly used to systematise the purchase of raw materials, it is applicable to optimising the purchase of any product required by the company provided purchasing costs can be determined in order and storage terms. The method is simple and based on a formula that helps to determine when and in what quantity company orders must be placed, taking into account demand and the company minimum safety stock is. In order to develop this model, some basic assumptions were made which are as seen below  It is based on the assumption that the company’s demand is known and independent and without major fluctuations during the year, so it is therefore constant.  The unit cost of each product or purchase must also fulfil these conditions, being known and fixed throughout the year. It is not valid therefore for seasonal products.  Storage costs are also known and depend on the level of stock.  Potential purchase or order volume discounts are not considered.  The supplier’s supply and loading times are also considered constant and are known.  It is assumed that there is no stock depletion and that at any time any product quantity can be requested from the supplier. d) The Theory of Constraints by Dr Eliyah Goldratt (1984) The Theory of Constraints (TOC) first surfaced in 1984, in a book written by Dr Eliyah Goldratt. In “The Goal” that is geared to help organizations achieve their goals. This theory geared towards eradicating bottlenecks and other issues clogging up the supply chain, can be a major boon for lean manufacturing efforts. Like so many other theories, strategies and practices, the TOC is intended to improve manufacturing processes so production can flow more smoothly and result in better efficiency. But before you can employ it in your factory you will need to know what TOC is and its benefits and the issues it can reduce and prevent. i. What is the Theory of Constraints? The TOC is an organizational change method that is focused on profit improvement. The essential concept of the TOC is that every organization must have at least one constraint. A constraint is any factor that limits the organization from getting more of whatever it strives for, which is usually profit. The goal focuses on constraints as bottle-neck processes in a job-shop manufacturing organization. However, many non- manufacturing constraints exists, such as market demand, or a sales department’s ability to translate market demand into orders. The theory of constraints defines a set of tools that change agents can use to manage constraints, thereby increasing profits. Most businesses can be viewed as a linked set of processes that transform inputs into saleable outputs. TOC conceptually models this system as a chain and advocates the familiar adage that a chain is only as strong as its weakest link, Goldratt defines a five-step process that a change agent that a change agent can use to strengthen the weakest link. The five steps of the Theory of constraints include:  Identify the system constraint The part of the system that constitutes its weakest link can be either physical or a policy.  Decide how to exploit the constraint Goldratt instructs the change agent to obtain as much as capability as possible from a constraining component, without undergoing expensive changes or upgrades. An example is to reduce or eliminate the down time of bottleneck operations.  Subordinate everything else. The non-constraint components of the system must be adjusted to a “setting” that will enable the constraint to operate maximum effectiveness. Once this has been done, the overall system is evaluated 2 Global Journal of Management and Business Research Volume XXII Issue III Version I Year 2022 ( ) E © 2022 Global Journals The Impact of Inconsistent Tracking on Inventory Management Case Study Societe Buns - Cameroon