Introduction:

Imagine receiving inventory exactly when you need it, with no excess stock taking up space. That’s the essence of Just-In-Time (JIT) inventory management.

Definition:

Just-In-Time is an inventory strategy where materials and products are ordered and received only as they are needed in the production process, minimizing inventory costs.

How It Works / Examples:

If you sell customizable laptops, instead of stocking all possible components, you order specific parts only after a customer places an order. This approach reduces the need for large inventories and allows for more flexibility in offering customized options.

Why It Matters:

JIT reduces the costs associated with holding inventory, such as storage and insurance. It also minimizes waste and allows your business to adapt quickly to changes in customer demand.

Additional Resources:

Learn more about Just-In-Time Manufacturing.