The Effect of Using the Production Technique on Time in Reducing the Cost of Inventory

Abstract

Most of the Iraqi economic units face the problem of rising inventory costs due to the retention of large quantities of all its forms to face production plans. It also lacks modern cost techniques that reduce the costs of inventory and product costs and improve the competitive position of the unit. The traditional systems in measuring costs, and the traditional view to inventory have to be reviewed. The current study aimed to demonstrate the role of JIT Production Technology reducing the cost of inventory, and to achieve this goal; a research was applied in one of the laboratories of the leather industry, The study concluded a set of conclusions, the most important of which is that the application of the technique of production on time reduces the cost of inventory in the economic unit, but the most important recommendations were, adopting techniques that rely on the system of withdrawal in production instead of the traditional system that depends on the payment system, which leads to the retention of large quantities of inventory and increase the rate of waste in the resources of the economic unit different, as the application of the system of drawing in production using Kanban cards has a significant impact on the speed of response to customers' requests, and Pull production flow, in addition to the contract with their reliable suppliers for the supply of materials on time by the economic unit, lead to a significant reduction in the production stock under operation and complete, and dispensing with stocks of raw materials.