 In this presentation, we will take a look at the manufacturing concept of a just-in-time inventory system. The concept of a just-in-time inventory system is going to be that we're going to start to put together the inventory after we get the order. In other words, we're going to get an order from the customer and then start to put together the inventory. For example, if we're a Dell computer and we're putting together computers, we're going to get the order for the computer before we start to assemble it. There are pros and cons to a just-in-time system. One of the pros is it's often considered to be more customer-focused because we can allow for the customer to give us a bit more customization if we're going to create and put together the computer after it has been ordered. It's also helpful that we may not have to have as much cost in just inventory being stored if we're able to just create these computers as we go. We don't need as much warehouse space. We don't need to just be storing computers. We don't need to deal with the risk of those computers that already have been assembled to go down in value and no longer be desirable in the market. We can just build them as we go. The concept is we're going to get the customer order and then we're going to schedule production at that point in time. Notice this has to happen pretty quickly because we want to get the computer out pretty quickly. All these components of production then are going to have to happen smoothly. That's going to be one of the downfalls of course. If there's any problems with any of these processes along the way to the production of the computer, then we don't have any warehouse in order to just go and pick up a computer. That's going to be one of the risks that we have. Then we're going to get the materials just in time for production. We're going to go ahead and get the materials. That means we have to have a good relationship with our suppliers and make sure that we can get everything we need at the point in time of order. As long as these things are all secure, then the just-in-time system can the benefits will outweigh the cost. Then we want to complete the just in time for assembly. We're going to complete the parts so that we can assemble it and then we're going to complete products just in time to ship. Notice all these things are basically happening very quickly after the customer has made an order. All these links along the way for it to work well need to have good communication with our suppliers. We need to be able to assemble everything in a systematic process and have everything done fairly quickly. If that's the case, then we have the benefit of being able to have a more customer-centered design so that we can have some more flexibility in the types of products we're going to put together. That's generally going to be beneficial in what customers are looking for oftentimes these days.