Urban78 / Getty Images
Just-in-time (JIT) inventory administration, additionally know as thin production and sometimes also known as the Toyota manufacturing system (TPS), is a stock method that makers use to enlarge efficiency. The procedure entails buying and receiving inventory for production and client deals just since it is needed seriously to create merchandise, and not prior to.
This type of stock management provides advantages, it is perhaps not without their drawbacks, and relies heavily on issue for example a strong, rapid and efficient network of companies.
The goal of JIT
Purchasing supply on an as-needed factor implies that the firm cannot hold any safety stock, therefore functions with constantly low inventory amount. This strategy support businesses reduce their own supply holding outlay, greatly enhance efficiency, and lower waste.
JIT calls for producers to-be very accurate in forecasts the demand for items.
Just-in-time supply administration try a positive cost-cutting stock administration technique, though it may also result in stockouts. Read more →