Just in time is one of the most talked about topics in materials planning primarily due to its tremendous success in the context of Japanese companies. JIT or zero inventory system is an idealized concept of inventory management wherein we are able to supply whatever material is required, whenever required just in time with 100 percent supply assurances without keeping any inventory on hand.
Just-in-time (JIT) is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This method requires producers to forecast demand accurately.
This inventory supply system represents a shift away from the older just-in-case strategy, in which producers carried large inventories in case higher demand had to be met.