Just in time (JIT) is a production strategy that strives to improve a business’s return on investment by reducing in-process inventory and associated carrying costs. The philosophy originated in Japan in the 1950’s and was first adopted by Toyota.
Often JIT has factories relying on suppliers to ship smaller quantities of inventory more often. The belief is that storage of unused inventory is a waste of resources. JIT focuses on having the right amount of inventory, at the right time, at the right place, without a safety net of inventory.
