JIT(Just in time)

Definition of  Just-in-time (JIT).

Just-in-time manufacturing is a strategy used in the manufacturing industry to reduce costs by reducing the in-process inventory level.

What is Just-in-time (JIT)?

Just-in-time(JIT) is an inventory management method in which goods are received from suppliers only as they are needed.

The main objective of this method is reduce inventory holding cost and increase inventory turnover.

Advantages of JIT

1.    High Quality

2.    Capital not tied up in stocks.

3.    Less Space required for stock.

4.    Closer relationships with suppliers.

5.    Low warehouse cost.

6.    Reduction in stock holding costs.

7.    Increase in cash Flow.