· customer order.JIT system can be divided into

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had faced a bottleneck in production due to lack of material stock. In some
instance delays extended for several weeks. 
To overcome this issue they build up stocks of parts, material,
components and work in progress for four months of sales. Holding inventories
for long time period incur high cost. Examples: costs of insurance, labour costs,
depreciation of warehouse equipment, costs of losses due to obsolescence and
finance costs of holding inventory.

inventory management engaged in following activities

Frequently monitor inventory level to make
sure that there is a quick response to demand

Maintain a minimum level of inventory


that Titeflex should be trying to create competitive advantages throughout
inventory management. They can use just- in -time (JIT) ordering system for  handling customer order.JIT system can be
divided into two sides. Such as just- in -time purchasing and just- in- time


in- time purchasing is purchasing materials and components from suppliers at the
exact time they are necessary for utilizing in production. Just-in- time
production is manufacturing products and delivered to the finish goods store at
exactly the time they are necessary for a trade to a customer. Through this
system company can operate under low warehousing cost. It will be helping to
increase profitability. And also can get following benefits to the Titeflex.


Can eliminates costs of hold inventories

Can increase flexibility of both
production system and employees

Can minimize material wastage in the warehouse

Can response customer orders quickly
without delays

Can build close relationship with their customers

Capital can be used in efficient way
rather than holding inventories

Can reduce labours in warehouse