Running head: JIT INVENTORY SYSTEM, SMITH CORPORATION 1
JIT INVENTORY SYSTEM, SMITH CORPORATION
Name:
Institution affiliation:
Date:
JIT INVENTORY SYSTEM, SMITH CORPORATION 2
JIT INVENTORY SYSTEM, SMITH CORPORATION
Introduction
JIT is an abbreviation for just in time. JIT inventory system is employed to increase
efficiency and minimize wastage as only goods needed in the production process are received. For
the method to achieve its objectives, it requires accurate prediction or forecast of the demand. JIT
is the reverse of just-in-case inventory system which holds large inventories in order to avail
enough products to absorb maximum market demand. JIT has advantages as it saves money and
the production process is short (Rózsa, 2004). Costs are minimized. The disadvantage is that it can
cause disruptions if material demand is not accurately forecasted or predicted.
