Just-In-Time Inventory Management
Just-in-time (JIT) inventory management is an inventory control system that minimizes stock levels by using a continuous supply of materials and goods to meet customer demand. The idea behind JIT inventory management is to keep only what is needed, when it is needed, and in the exact amount needed. This inventory management system helps companies reduce their costs and improve efficiency by eliminating overproduction, reducing storage fees and increasing throughput.
Benefits of JIT Inventory Management:
- Reduced inventory costs
- Improved customer satisfaction
- Reduced overhead costs
- Higher quality products
- Increased efficiency
- Improved cash flow
Examples of JIT Inventory Management:
- A manufacturing company producing high volumes of parts on a regular basis can use JIT inventory management to ensure that it has the right parts at the right time.
- A retail store can use JIT inventory management to ensure that it has the right products in stock at the right time.
- An e-commerce company can use JIT inventory management to reduce its inventory costs and ensure that it has the right products in stock when customers make orders.
JIT inventory management is an effective inventory control system that can help companies reduce their costs and improve efficiency. By keeping only what is needed, when it is needed, and in the exact amount needed, companies can ensure that they have the right products at the right time.
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