Glossary /
Just in time inventory

Just in time inventory

An inventory management that is focused on optimizing inventory levels by receiving raw materials and components from suppliers precisely when needed for production, minimizing excess inventory on hand.

This approach requires close coordination with suppliers to synchronize deliveries with production schedules, ensuring the availability of materials without excessive storage costs or inventory holding expenses. While JIT offers advantages such as reduced carrying costs and improved efficiency, it also poses risks, particularly if sales forecasts are inaccurate or supply chain disruptions occur.

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