How does JIT delivery work?

Answer 1

jIT means Just In Time. This is stock delivered as the stores inventory hits its lowest or reserve level. Although the "in time " is not to the hour when stocks at its lowest it is normal for the stock to arrive on the lowest day. Most stores have a sales pattern for product types. I.e high sales on food starting on a friday increasing across Saturday and dropping back down Sunday for example. Data shows this against a product. The system will know based on the pattern that stock needs to be in store no later than Thursday will be the expects stock to meet the Friday saless plus a small percentage as a reserve which stops stock running out completely ...Just in time. Then a higher volume on Friday delivered for Saturday sales etc. This system is excellent for date specific foods I.e sell by dates, use by dates. Just in time here allows dated stock to sell low and then filled up with new longer dates with minimal stock rotation required