What is the primary function of a Just-In-Time (JIT) inventory system?

The primary function of a Just-In-Time (JIT) inventory system is to ensure that materials arrive just as they are needed for production. This approach minimizes the time that inventory is held and reduces storage costs, as it aims to reduce waste by aligning production schedules closely with demand. In a JIT system, goods are produced and delivered at the moment they are required in the manufacturing process, rather than being stored for long periods. This helps improve efficiency and response times, allowing for a more streamlined production process that can adapt quickly to changes in consumer demand.

The benefits of this system also include reducing excess inventory, minimizing carrying costs, and improving cash flow since capital is not tied up in unsold goods. Overall, the JIT philosophy emphasizes production efficiency, reducing lead times, and focusing on waste elimination.