Ensures that the exact amount of material inputs will arrive only as they are needed in the operation process
Businesses are seeking to become ‘lean’, meaning they emphasise low cost
Aims to overcome the problem of end of period stock valuation through having the wider range of products as they need to store less and can order in response to consumer demand
Saves money as there is no expense and insurance costs
However, requires a responsive operations function with flexible processing, an ability to respond quickly to changes in market demand and reliable supplier deliveries
