Just in time management

• Just-In-Time (JIT) Management


  1. Reduce waste of materials and products

  2. Have as little stock as possible

  3. Products available just in time for when the customer needs them
• Advantages of JIT

  • Storage costs are reduced
  • Cash flow is improved as money isn't tied up in stock
  • Less waste because there's less out-of-date or damaged stock lying around
  • Business is more flexible so it can cope with changes in demand and easily adapt its products to suit changing demand
• Removing the cost of storage and reducing waste

  A business can price their products lower and gain a competitive advantage
• Disadvantages of JIT

  • Firms rely on lots of frequent deliveries from suppliers which can be hard to organise and stressful for staff
  • If the supplier is unreliable then the firm may run out of stock and have to stop production
  • Smaller, more frequent deliveries mean the firm can't benefit from purchasing economies of scale from buying in bulk