Just in Time Inventory Management
As the name suggests, just in time (JIT) is the inventory management method where the stocks are received from the supplier at the time of their requirement. This decreases inventory holding costs and increases the inventory revenue turnover by increasing cash flow in the business. The entire process of Just in time inventory management requires proper planning of the whole supply chain and the usage of superior software to plan the industrial task to eliminate any error in the process. Following are some acute effects of the Just in time inventory management system: [1] Gives Manufacturer more control: The Manufacturer gets more control in the JIT inventory management model. It helps them to Manufacturer at varying speeds to cater to ever-changing market needs. For example, Toyota orders raw materials when an order is received, which allows them to reduce the inventory holding cost and gives the Manufacturer more control in product manufacturing. [2] Decreas...