Just In Time Inventory System (JIT)

Introduction Just-in-time (JIT) cataloging system was developed in Japan after World War II to manage the cost of difficult economic times (Waguespack and Cantor, 1996). The challenge for many Japanese companies after the war was to find ways to meet the needs of customers and companies with as few resources and capital as possible. Japan has developed these technologies to manage production, limit unnecessary products, and reinvest in valuable money saved on the business structure (Waguespack and Cantor, 1996).

Just-in-time (JIT) inventory system is an inventory strategy that companies use to improve productivity, product quality, and sales while reducing labor costs and space. In JIT, companies can purchase materials only if they are needed to meet actual customer needs. With JIT you can minimize inventory and even reduce it to zero. In order to properly implement the JIT inventory system it is necessary to carefully arrange items so that they arrive at the right time when necessary. The JIT inventory system has advantages and disadvantages. One of the advantages of JIT is that the funds used to purchase inventory to meet anticipated consumer demand can be used for other matters within the company. Another advantage is that space is free. This helps employees work more efficiently as employees have more breathing space. Because more employees can use more space, output and response time

In a timely inventory management system, products are not completely solved due to product shortage and usability problems. The Timely Inventory (JIT) system is one of Toyota's unique innovation technologies introduced in the Japanese automobile industry, and is currently used in all automobile manufacturing industries. Many principles and practices can be used to achieve efficiency and effectiveness of the production process. As management points out, the task of reducing waste is often unnecessary for human, capital or material resources as it instinctively knows that waste will be removed once the waste is identified It starts with identifying the use. Once waste is a goal, you can design a new process or exercise to handle it.