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Just in Time (JIT)
What is the concept of Just in Time (JIT) in inventory management?
Just in Time (JIT) is an inventory management approach where materials are received and produced just when they are needed. It aims to reduce inventory holding costs and improve operational efficiency.
How does the JIT (Just-in-Time) approach minimize inventory holding costs?
The JIT approach minimizes inventory holding costs by aiming to have inventory delivered or produced just in time for use or sale, eliminating or reducing the need for excessive inventory storage. This approach reduces carrying costs, minimizesthe risk of inventory obsolescence, frees up working capital, and improves overall efficiency in the production and supply chain processes.
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