- Just in Time (JIT) is a production strategy that aims to minimize inventory and production costs by producing goods only when needed.
Features of Just In Time:
- Production is demand-driven
- Raw materials and inventory are kept to a minimum
- A pull system is used, where production is triggered by customer orders
- Emphasis is on waste reduction and continuous improvement
Ideal situations for using Just in time:
- Products with short life cycles or high obsolescence rates
- Customized products with varying demands
- Companies with limited storage space
- Companies looking to reduce waste and improve efficiency
Advantages of Just In Time:
- Reduced inventory holding costs
- Lower risk of inventory obsolescence
- Improved quality control
- Reduced lead times
- Reduced waste
- Improved supplier relationships
Disadvantages Just In Time:
- Production disruptions caused by delayed deliveries from suppliers
- Dependence on suppliers for on-time delivery
- Difficulties in managing and forecasting demand
- High initial investment in technology and supplier relationships
- Possible increase in production costs due to smaller batch sizes
