Just In Time (JIT) Inventory Systems

Just In Time (JIT) Inventory System is a management approach where companies receive materials and produce goods only when needed, reducing inventory storage costs. It relies on precise planning and strong supplier relationships to ensure parts arrive exactly when required for manufacturing or sales. This minimizes excess stock, lowers waste, and improves efficiency. However, it also makes companies more vulnerable to supply chain disruptions, since they don’t keep large reserves of inventory. Overall, JIT aims to streamline operations, cut costs, and respond swiftly to customer demand.