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Meaning of just-in-time

 

 

 

Just-in-time

 

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Business glossary

 

Meaning of term just-in-time :

 

Just-in-time is a system which operates on the scheduling of stocks in a precise, co-ordinated way, so minimising the quantity needed to be held. Stocks are only ordered a short time period before they are needed for the actual production of the final good. This technique helps to minimise stocks and therefore reduce the costs of holding stocks. Just-in-time production requires a close relationship with suppliers to ensure that stocks are available exactly when they are needed.

 

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