JIT

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 that producers are able to accurately forecast demand.

Investopedia Says:
A good example would be a car manufacturer that operates with very low inventory levels, relying on their supply chain to deliver the parts they need to build cars. The parts needed to manufacture the cars do not arrive before nor after they are needed, rather they arrive just as they are needed.

This inventory supply system represents a shift away from the older "just in case" strategy where producers carried large inventories in case higher demand had to be met.

Related Links:
We look at a retailer's inventory turnaround times, its receivables as well as its collection period. Measuring Company Efficiency
We go over these methods of calculating this component of the balance sheet, and how the choice affects the bottom line. Inventory Valuation For Investors: FIFO And LIFO
A company's efficiency, financial strength and cash flow health shows in its management of working capital. Working Capital Works

The idea that inventory is manufactured (or acquired) only as the need for it arises or in time to be sold (or used). A major goal is to cut down on inventory investment.

Also, just in time. At the last moment, as in The police arrived in the nick of time, or He got there just in time for dinner. The first term began life as in the nick and dates from the 1500s, when nick meant "the critical moment" (a meaning now obsolete). The second employs just in the sense of "precisely" or "closely," a usage applied to time since the 1500s. Also see in time, def. 1.

JIT may refer to:

• Various meanings of Just In Time:
  • Just-in-time compilation - a technique for improving the performance of virtual machines in computing.
  • Just-in-time (business) - a business inventory strategy.
• Jabber ICQ Transport.
• Joint Interoperability Tool-a tool used by the Joint Interoperability Test Command JITC to register systems.

Jit may refer to: J.I.T. Juvenile Delinquent in Training: Southern slang used to describe the "Thug" youth element. This term has origins in the "Youth Correctional System".

• Jit, a style of Zimbabwean dance music.
• Jit (movie), 1991 Zimbabwean movie
• Jit (Corvette), An abbreviation for "Jawvette", also known as a Corvette.
• Jit (town), a Palestinian town in the West Bank.

This disambiguation page lists articles associated with the same title. If an internal link led you here, you may wish to change the link to point directly to the intended article.

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)