Do you think that the JIT program is only the beginning of a best practice for Wal-Mart? Possibly, JIT is the first of many steps Wal-Mart will make until they create a super-hybrid JIT program. If you were able to 'fix' Wal-Mart's current issues - Wha

Running Head: WAL-MART 1

WAL-MART 3

Wal-Mart

Student’s Name

Institution

Just in Time (JIT) ordering enables Wal-Mart to lessen the costs linked with inefficient inventory decisions and handling. Based on research, it is clear that ordering and sales are more closely associated because they decrease the intensity of Bullwhip. Wal-Mart Company employs JIT in a number of ways. For instance, the organization uses JIT to offer clients an every-day-low-price largely in part. This is because JIT enables to control efficiency. JIT has a great influence over its suppliers and often pressures that enable the organization to earn suitable profits. The company pioneered JIT inventory concept in order to deliver what is needed. The company relies of technology in order to enhance change that can effectively enhance the growth and development of the business. The JIT is used by the management of the company to control costs and ensure consistent cash flow during economic difficulties. JIT inventory models assist vendors to meet their inventory challenges (Pride, Hughes, & Kapoor, 2010).

I find JIT as a tool of management because it has enhanced the way the organization does its business. With the knowledge of JIT, better management and understanding of inventory is attained. For instance, the organization has managed to increase its supplier’s inventory levels. Wal-Mart JIT efforts are leaving their suppliers with extra inventory. The demands that the company places on its suppliers are incredible because of the power the company on its suppliers. The model has optimized inventory management and flow that was originally made famous by large organizations such as the Wal-Mart. Wal-Mart is a good example of an organization that has utilized the JIT Model. Instead of having huge holding costs, the company minimizes product-ordering costs with each vendor. This gives the company a greater cash flow and better inventory control (Pride, Hughes, & Kapoor, 2010).

References

Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2010). Business. Australia: South-Western/Cengage Learning.