Materials
Just-In-Time (JIT)
An inventory strategy where goods are received only as needed for production or sale.
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Updated 2025-10-01
Definition
JIT reduces inventory holding costs, minimizes waste, and requires precise demand forecasting and supplier coordination.
Overview
Overview
JIT enables lean operations by maintaining minimal inventory and synchronizing supply with production schedules or customer orders.
Benefits
- Reduced storage costs
- Lower waste and obsolescence
- Improved cash flow
- Increased operational efficiency
Example
A car manufacturer receives parts daily from suppliers based on production schedules to avoid holding excess inventory.
Tags
#Just-In-Time#Inventory Management#Lean Manufacturing#Materials#Supply Chain
Related Terms
KANBAN System
Economic Order Quantity (EOQ)
Inventory Turnover
