Just In Time

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Just In Time

A supply chain management system designed to reduce carrying costs to a minimum. A firm only orders what it expects for its immediate needs; therefore, it keeps a low inventory. For example, if a retailer believes it will sell 1,000 widgets in a week, it orders precisely 1,000 widgets from its manufacturer. JIT systems require that the retailer at the end of the supply chain can accurately predict demand for its products. They also require that each stage of the supply chain knows exactly how much time it takes to fill an order when it is made. The automotive industry and budget retailers commonly use JIT systems. See also: Lead time, Just in case.
References in periodicals archive ?
The JIT inventory system enables companies to fill customer orders when ordered.
In this JIT system, independent units (IU) are linked with conveyor lines (CL) conveting many discreete operations into a lean and continuos linear manufacturig cell.
Application of JIT to reduce inventory is only a small fraction of the full potential benefits of a JIT system (Blackburn, 1991; Gilbert, 1994; Towner, 1994).
Mills with adequate inventory could wait for prices to subside but JIT mills had to stay in the market, causing their average purchase price to escalate.
The book offers practical "how-to" instruction on the implementation of ESP, including coverage of the management system and production scheduling for supplier organizations, case studies featuring ESP implementation, and guidance on when and where the ESP system is more effective than JIT.
The role of transportation in JIT is especially critical when long supply line logistics channels are involved.
Today, they are being used not only as a part of standard JIT systems but also as independent purchasing systems.
Under the JIT concept activities such as moving parts, waiting for parts, machine setup, and inspection are referred to as non-valued added activities.
While both JIT concepts and automation programs have been widely implemented and highly successful in large manufacturing companies, many smaller manufacturing companies have wondered whether it would be economically feasible to utilize these same techniques and derive these same benefits.
Companies that have already developed true JIT capabilities are reaping the rewards not only in higher productivity but in more jobs with higher profit margins.