Glossary
What is Just-in-Time (JIT)?
Last updated July 2026
Definition
Just-in-time (JIT) is an approach that minimizes on-hand inventory by receiving goods only as needed. It cuts carrying cost but raises exposure to supply disruption.
Also known as: JIT
JIT works best with short, reliable lead times. For long-lead industrial spares, a pure JIT model risks costly stockouts.
The practical answer is selective: JIT the predictable, buffer the critical and long-lead.
Part of Working capital & inventory turns.
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