JIT inventory

Just-in-Time (JIT) inventory is a strategy where a company orders and receives materials or products only as needed for production or sales, rather than storing large amounts in advance. This approach reduces storage costs and waste, ensuring inventory is fresh and demand-driven. It requires precise planning and reliable suppliers to avoid delays. By minimizing excess stock, JIT helps companies operate more efficiently and respond quickly to customer needs. However, it also involves risk if supply chains are disrupted, potentially causing delays in production.