4.4 Just-in-Time (JIT) and Vendor-Managed Inventory (VMI)
4 min read•july 31, 2024
Just-in-Time (JIT) and Vendor-Managed Inventory (VMI) are key strategies in modern inventory management. These approaches aim to streamline supply chains, cut costs, and boost efficiency by carefully controlling stock levels and timing of deliveries.
JIT focuses on receiving goods only when needed, reducing waste and improving flexibility. VMI puts suppliers in charge of managing buyer's inventory levels. Both methods require close coordination, data sharing, and strong relationships between supply chain partners.
Just-in-Time Inventory Management
JIT Principles and Goals
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Levels & Barriers to Supply Chain Integration: a Conceptual Model of Supply Chain Performance ... View original
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Just-in-Time (JIT) inventory management aims to reduce inventory holding costs by receiving goods only as needed in the production process
JIT focuses on eliminating waste and improving efficiency in manufacturing and supply chain operations
Core principles involve producing only what is needed, when it is needed, and in the quantity needed
JIT implementation often leads to shorter lead times (hours instead of days), reduced storage space requirements (warehouse downsizing), and improved overall supply chain performance