Just in time

• What is just in time (JIT) in production?

  A type of lean production technique
• What does just in time focus on regarding inventory?

  Holding very little or no stock
• What is the opposite of just in time?

  Just in case
• What is the main idea behind just in time inventory management?

  Stock arrives just in time for sale
• What are the benefits of just in time inventory management?

  • Reduced waste
  • Lower storage costs
  • Higher cash flow
  • Greater productivity
• How does just in time lead to reduced waste?

  By holding less stock and reducing storage needs
• Why does just in time lead to higher cash flow?

  Less money tied up in inventory
• What type of method is just in time compared to just in case?

  Pull method
• What drives production in just in time inventory management?

  End customer orders
• How can added responsibility in just in time affect employees?

  It may increase their motivation
• What are the disadvantages of just in time inventory management?

  • Higher average unit costs
  • Increased pressure on logistics
  • Reliance on suppliers
  • Risk of unmet unexpected demand
• Why might just in time lead to higher average unit costs?

  Due to smaller, frequent purchases
• What is a potential issue with relying on suppliers in just in time?

  Failure to deliver on time
• What can happen if unexpected demand occurs in just in time?

  It may lead to loss of sales
• What key considerations should be evaluated for just in time inventory management?

  1. Supplier reliability and flexibility
  2. Predictability of sales
  3. Relative size of storage costs
• How does supplier reliability affect just in time management?

  Reliable suppliers make JIT easier to manage
• Why is predictability of sales important for just in time?

  It makes JIT easier to manage
• How do high storage costs influence the decision to use just in time?

  High costs may favor using JIC
• Why do many secondary sector businesses use just in time?

  To achieve efficiency gains and lower costs
• What is a key feature of just in time inventory management?

  Reduced waste