bonnie123

pleas help me!!!!
i have a question: what kind of business can not benefit from JIT(just in time)?
thanks a lot

bernhard

Hi Bonnie, perhaps you could explain more precisly what Just in time means, i dont know personally.

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Bernhard
(Admin)

suggestions ?

bonnie123

JIT(inventory form)

pluiepoco

Banking, I thought, because JIT is good for all!

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刘晓雨 pluiepoco
Home of Asia, 中国语言论坛(Chinese Forum of Languages), 西瓜村

bonnie123

i agree just in time is good for all, but why banking is not suitable to just in time.
thanks a lot for replay.

pluiepoco

Because JIT concentrate on time efficiency, that is applying in production-distribution progress, that is kind of direct-selling, within the realm of logistics.

But as you know, banking is money business, and money is an intangible goods, it's produced by products which are circulated in market, that is, produced, distributed, sold and bought and consumed... But money is special, banking is the special of special, and the inventory of goods in banking is the organization, that is a bank, and you know, bank sells and buys in deposit and credit, JIT is not applicable. Do you think so?

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刘晓雨 pluiepoco
Home of Asia, 中国语言论坛(Chinese Forum of Languages), 西瓜村

pluiepoco

As an general norm, Business means to buy and to sell or either of them.

Everything in the world can be deems as a business, so as we said always: there's no your business, which means there's nothing you can do, or no matter of you

But in an economic sense, business means a sector beside industry, agriculture. It's one of the three of all human economic activities.

Business means to communicate, to go between the manufacturer and the consumer, who act respectively as the primary sellor and ultimate buyer. And thence distribution comes into being, and things get complicated, beside the manufacturer and the end consumer, we have also sales agent, franchised, vendor, distributor, solicitor, sellor, marketer, promoter, media, and so on. Yet the others are not essential in the production-consumption chain. What we need in another section "business" between the production and the consumption is to build up relations, because the society is segmented, manufacturers and consumers cannot know each other without help of the going-between "business". So at first formation, business couldn't produce, it could only liaise, later, things changed a little, business and industry combined, for example, industry hires business or even create a business agency to work for its products, then business actually become one process of the whole production, then it generates values. And at this time, inventory comes into being, inventory is a kind of unrealised value in products. If sold to consumers, the products can realise its value in having its price. But if not sold, all products would be a nul. So inventory bears cost, but in fact, the cost is not of inventory, is of the market conditions, but it has to bear. JIT is zero inventory, infact it's not zero because it does have inventory, we say zero inventory means that when the goods is coming to our inventory, we sell out it immediately, there is no pressure on our store or inventory at all, or even once the goods is ordered and not placed in store, we have already sold it out! This is considered just in time. So we nearly bear zero storing cost, and depreciating value of products following the fluctuating market conditions.

So in general, we can say that Business without an inventory should not benefit from Just in Time, because the JIT is tailored to inventory-concerned businesses.

Hope my words is not totally wrong and meanwhile helps you a little.

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刘晓雨 pluiepoco
Home of Asia, 中国语言论坛(Chinese Forum of Languages), 西瓜村