Glossary

Just-in-Time (JIT) Inventory

Tags: Glossary

An inventory management technique that only requires to get the product from the suppliers when needed.

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What is Just-in-Time (JIT) Inventory?

Just-in-Time (JIT) Inventory is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.

 

This inventory management technique allows businesses to reduce their total inventory costs by ordering and stocking only the amounts of materials and products needed to meet current customer demand. The goal of the JIT system is to reduce the cost of inventory and increase efficiency by eliminating waste and delays. 

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