Just-in-Time (JIT)
Definition
Just-in-Time is a production and replenishment approach in which materials arrive only as they are needed, minimizing inventory throughout the system. It originated in the Toyota Production System.
In Practice
JIT replaces large buffers with frequent, small deliveries synchronized to actual consumption, often signaled by kanban cards or electronic pull signals. It only works when its preconditions hold: reliable suppliers, short and stable lead times, level production schedules, and high quality, because there is no stock to hide problems behind.
The payoff is substantial: less cash tied up in inventory, less warehouse space, faster exposure of defects, and quicker feedback loops. The cost is fragility. A single missed delivery can stop a production line within hours, which is why JIT operations invest heavily in supplier development and logistics reliability.
Automotive is the canonical example: seat assemblies arrive at the plant in the exact sequence of the cars on the line, hours before installation. The 2021 semiconductor shortage showed the flip side, prompting many firms to blend JIT with strategic buffers for high-risk parts, sometimes called just-in-case.
Related Calculators
Related Terms
Lean manufacturing is a management philosophy focused on maximizing customer value while systematically eliminating waste, such as excess inventory, waiting, overproduction, and defects.
Push vs Pull StrategyA push strategy produces and positions inventory based on forecasts before demand occurs, while a pull strategy triggers production or replenishment only in response to actual demand. Most real supply chains combine both around a push-pull boundary.
Lead TimeLead time is the elapsed time between initiating a process, such as placing an order, and its completion, such as receiving the goods. It is one of the most important inputs to inventory, planning, and customer promise decisions.
Supply Chain ResilienceSupply chain resilience is the capacity to anticipate, absorb, and recover quickly from disruptions such as supplier failures, natural disasters, or demand shocks, while continuing to serve customers.