Just in Time is a method of inventory taking where you only have the right amount on inventory at any given time. It was created by the Toyota Motor Company. There are many benefits that happen when companies use this method. The company will end up saving more money with this method. Most of this method has been used in the Motor industry. Many people think that JIT is the reason for the supply chain issues, but it is not.
Key Takeaways:
- JIT is the process of only ordering what you need at the right time.
- People think this was the probably for the supply chain issues. It’s not.
- JIT helps companies save more money and reallocate the time elsewhere.
“When applied to inventory or purchasing, JIT aims to reduce the number of components or finished goods sitting in the warehouse.”
Read more: https://smallbusiness.chron.com/just-time-inventory-definition-23475.html
