Just-In-Time (JIT) inventory management is a supply chain strategy that aims to minimize inventory levels by receiving goods and producing items only when they are needed, in the quantities required, and at the right time. The JIT approach is based on the principle of producing and delivering products just in time to meet customer demand, eliminating excess inventory and reducing carrying costs. JIT is commonly associated with the Toyota Production System and has become a widely adopted inventory management strategy in various industries.
It's essential to note that implementing JIT requires careful planning, strong supplier relationships, robust demand forecasting, and effective quality control. JIT is highly dependent on the smooth functioning of the entire supply chain, and disruptions in any part of the process can have significant consequences. As with any inventory management strategy, companies must carefully assess their unique needs, risks, and capabilities before adopting JIT principles.