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Business
Just-in-Time
A production and inventory system where materials arrive exactly when needed, reducing storage costs and waste.
Just-in-Time (JIT) improves cash flow and efficiency but requires very reliable suppliers. Any disruption (strike, natural disaster) can stop production completely. Many companies use a hybrid approach after learning from supply-chain shocks.
It's ordering pizza so it arrives the exact second you're hungry instead of keeping ten pizzas in the fridge.
Real world: Toyota's famous Just-in-Time system means parts arrive at the factory minutes before they are needed on the assembly line. This saves huge amounts of warehouse space and money.
💡 Just-in-Time saves money and space — but only if everything runs perfectly.