JIT

The Just-in-Time (JIT) inventory system is a management method that aligns raw material orders from suppliers with production schedules. Goods are delivered only when required by the production process. This approach increases efficiency, reduces waste, and lowers inventory costs. Accurate demand forecasting by the manufacturer is crucial for its success.

Advantages of JIT

• Lower storage costs

• Higher production efficiency and flexibility

• Reduced production and overall delivery times

Disadvantages of JIT

• High sensitivity to delivery delays, increasing the risk of stock shortages

• Strong logistics needed to keep production running smoothly