The major source of revenues for retail and wholesale businesses is the sale merchandise. In terms of dollars, the inventory of goods held for sale is one of the largest assets of a merchandising business. The cost of goods sold is the largest deduction from sales because merchandise is continually being bought and sold. In fact, this cost is often larger than the total of other expenses. Inventories are also important to manufacturing companies. These companies have three kinds of inventory: raw materials (which are to be used in making products), partly complete products (which are often called work in process), and finished goods (which are ready for sale). Many companies, especially those in manufacturing, are attempting to rescue their inventory assets by changing to a Just-in-Time operating environment. In this environment, rather than letting inventories pile up for later use, the companies work closely with suppliers to coordinate and schedule shipments so that the goods arrive “Just-in-Time” to be used. Less money is there by tied up in inventories and the costs associated with carrying inventories are reduced. A good application of Just-In-Time will reduce inventory and the wastage, which usually comes with high stock levels.  The purpose of this procedure, as the name implies, is to make sure that all materials, resources, operators, and other elements required for a production process will be easy to get at the necessary place just at the time in which they are needed to make the process to continue. A Just-in-Time system can be named as a system to make and deliver finished goods just-in-time to be sold, sub-assemblies just-in-time to be assembled into finished goods and purchased materials just-in-time to be made into fabricated parts. The system is basically a PULL system in which the customer drives (pulls) the system. Just-In-Time production needs close organization between suppliers and their customers.  In order to meet the demanding timetables of multiple customers, suppliers must know the ability of their production facilities to meet alternate demand scenarios.