Just-In-Time (JIT) System
A Just-In-Time (JIT) System is a method of minimizing a firm's inventory investment by having materials arrive at precisely the time they are needed for use in production
Ideally, the firm has only work-in-process inventory
The system is risky since there are no safety stocks and the materials that are used must be of adequate quality
Obviously, the JIT system requires a considerable amount of cooperation from the firm's suppliers, shipping companies, and employees
- 1994, HarperCollins Publishers