Just In Time (JIT) Inventory Model - Is It Effective?
Just-in-time (JIT) refers to a collection of practices that is designed to eliminate waste. These organizational practices encompass the entire logistics flow of materials from purchasing through production and distribution. The elements of JIT may include shared product design with suppliers and customers, movement toward single sourcing, proximate suppliers and customers, reduced set-up times, preventive maintenance, reliance on analytic tools to identify sources of defects and plant optimization layout (re)configurations, among others. The benefits are pervasive and can include lower total system costs and improved product quality when managed at optimum levels.