Just-in-time (JIT) is a concept in logistics and production that delivers or produces materials or products exactly when you need them. The goal is to reduce inventory costs, reduce production costs and increase flexibility in the supply chain.
JIT requires precise coordination between suppliers, manufacturers and customers so that a smooth flow of materials and production can be ensured. The most important functions and requirements for a successful just-in-time system are:
The opposite of just-in-time is “batch production” or “batch manufacturing,” where products are manufactured in large quantities or batches and then kept in stock. This results in high inventories, longer processing times and higher storage costs compared to just-in-time systems.
