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Just in time inventory systems9/21/2023 JIT is an extremely advantageous, but delicate, strategy used by manufacturers and other types of industries that rely on chains of production in which raw materials are turned into component parts, and those parts are transported to facilities where they’re assembled into a finished product. Advantages of Just In Time Inventory Management It only took a few years for news of this process to start making its way overseas, and JIT was soon adopted by Western manufacturing industries. Just in Time was designed to make up for issues, such as a lack of space for additional factories and large warehouse storage, an economy still struggling to recover from World War II, and few natural resources. This necessity was born out of Japan’s post-war economic situation. Using JIT allowed them to do away with the need to hold excess stock, and it also allowed them to use a production facility for more than one model at a time, which further streamlined operations. The company needed to cut waste and make more efficient use of the limited natural resources at their disposal. Just in Time, as a concept and process, was arguably created by Toyota in Japan during the 1970s. The History of JIT Inventory and Production The idea is that the entire production chain runs efficiently enough that only the exact quantity of materials to complete the current orders is moving through the inventory system at one time. ![]() It’s a strategy to deliver materials and inventory when, and only when, they’re needed/ordered, without holding excess. This method of management was developed for companies looking to reduce inventory-related expenses and wasteful practices. Just in Time (JIT) inventory management was conceptualized in an effort to create a leaner, more efficient, and less expensive chain of production.
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