JIT Inventory
Just-in-time (JIT) inventory is a strategy used by businesses to only produce goods as they are needed in the production process, rather than keeping large amounts of inventory on hand. This approach helps companies reduce costs associated with storage and waste, and allows for a more efficient production process.
One example of JIT inventory is the automotive industry, where car manufacturers only order parts from suppliers as they are needed on the assembly line. This helps to minimize the amount of inventory that needs to be stored, and reduces the risk of parts becoming obsolete or damaged while in storage.
Another example is the fast fashion industry, where clothing retailers produce new designs in small quantities and quickly restock popular items based on customer demand. This allows companies to react quickly to changing trends and minimize the amount of unsold inventory at the end of each season.
Overall, JIT inventory is a valuable strategy for businesses looking to streamline their production processes, reduce costs, and improve overall efficiency.
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