Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Just-In-Time (JIT)
An inventory strategy where goods are received only as needed for production or sale.
Definition
JIT reduces inventory holding costs, minimizes waste, and requires precise demand forecasting and supplier coordination.
Overview
JIT enables lean operations by maintaining minimal inventory and synchronizing supply with production schedules or customer orders.
Role
An inventory strategy where goods are received only as needed for production or sale.
Focus
JIT enables lean operations by maintaining minimal inventory and synchronizing supply with production schedules or customer orders.
Example
A car manufacturer receives parts daily from suppliers based on production schedules to avoid holding excess inventory.
Benefits
- Reduced storage costs
- Lower waste and obsolescence
- Improved cash flow
- Increased operational efficiency
FAQs
Q: Can you give an example of Just-In-Time (JIT)?
A: A car manufacturer receives parts daily from suppliers based on production schedules to avoid holding excess inventory.
Q: What are the key benefits of Just-In-Time (JIT)?
A: Reduced storage costs. Lower waste and obsolescence. Improved cash flow.