JIT

Category: Inventory

Also searched as: Just in time

Definition (plain English)

Just-in-time replenishment aims to receive stock close to when it is needed rather than holding large safety stock.

Why it matters commercially

JIT lowers inventory carrying cost but increases exposure to supplier delays, freight disruption, customs holds, and demand spikes.

Example

A distributor moved away from strict JIT after port delays repeatedly created customer stockouts on imported ingredients.

Common mistake

Reducing stock buffers without improving forecast quality, supplier reliability, lead-time visibility, and exception plans.

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