JIT Inventory Management

Just-In-Time (JIT) Inventory Management is a strategy where a company keeps only the small amount of materials and products needed for immediate production or sales. Instead of storing large inventories, supplies arrive exactly when they are needed, reducing storage costs and minimizing waste. This approach requires precise planning and strong supplier relationships to ensure materials arrive promptly. JIT aims to increase efficiency, lower overhead, and improve cash flow by aligning inventory levels closely with actual customer demand, rather than overstocking to anticipate future sales.