Just in time inventory management system – meaning.

The just in time (JIT) inventory management system was developed in 1970s by Toyota in Japan. It is different to other inventory management system which are based on push production flow system whereby the products are made and placed in inventory awaiting sales order from customers .

Just in time is based on pull production flow system. This means that the product is not made until a customer request it and components are not produced until they are required in the next stage of manufacturing . If the company is operating at full just in time system , Almost no inventory is maintained ; no raw materials or finished inventory but there may be small amount of work in progress inventory.

Just in time (JIT) inventory management system seeks to eliminate any waste arising in manufacturing process as result of using inventory. Just in time purchasing applies just in time principle to materials delivered from supplies.

3 thoughts on “Just in time inventory management system – meaning.”

  1. Pingback: Just in time (JIT) Revision question (NBAA, B5, NOV 2018) - ACCA ONLINE ACCOUNTING TEACHER

  2. Pingback: Inventory Turnover Ratio – meaning and formula. – ACCOUNTING CLASS

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