Definition of Just In Time

Just in time (JIT) is a system used by companies to adjust their manufacturing processes according to the market demand. Producers and suppliers get aligned with the manufacturing team to supply the required raw material according to the demand from the manufacturing team. This system helps companies to reduce their inventory waste and cost.


This system was first widely adopted by Toyota, Japan in the 1970s. For the successful functioning of this system, producers need to develop accurate demand forecasts. The quality of Just in time depends on the flawless manufacturing processes, no machinery breakdown, skilled labor, and efficient suppliers.

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