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Just-in-time

Just-in-time is a production philosophy that schedules manufacturing or purchasing only at the moment goods are needed, targeting near-zero inventory. It cuts holding costs and exposes inefficiency hidden by buffer stock.

ByHoang TruongUpdated

FrameworkLean operations

See it move

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Traditional manufacturing holds buffer stock at each stage to absorb delays and defects, so problems stay hidden behind the cushion. Just-in-time instead moves goods only when a customer order pulls production and purchasing, driving inventory toward zero — which means any supplier delay or defect halts the line immediately.

Where it fits
SubjectCost AccountingPeripheralTopicStrategic & Lean Cost ManagementPeripheral

Check yourself

PracticeCORE

A manufacturer switches from a conventional push-production system to just-in-time (JIT) manufacturing. Which of the following outcomes do JIT proponents emphasise as a key benefit of the change?

Select an answer to check your understanding.