JIT Inventory System

A Just-In-Time (JIT) Inventory System is a strategy where a company keeps very minimal stock on hand and receives materials or products only when needed for production or sales. This approach reduces storage costs and waste by avoiding excess inventory. It relies on precise planning and strong supplier relationships to ensure materials arrive exactly when required. By doing so, businesses can operate more efficiently, maintain fresher stock, and free up resources for other priorities. However, it requires careful coordination to prevent delays that could disrupt operations.