Just-in-time
Just-in-time seeks to produce or obtain items when needed by the next process or customer, reducing unnecessary inventory, waiting and waste. It relies on reliable flow, quality, short set-ups and cooperative supply arrangements rather than merely cutting stock. Lower buffers can expose problems sooner but also increase vulnerability to disruption if the supporting system is weak. Evaluate total cost, resilience and customer requirements, not inventory quantity alone.
Worked example
Frequent small deliveries linked to production reduce storage, but unreliable suppliers could stop a line with little safety stock.
Common mistake
JIT does not universally mean zero inventory or that traditional EOQ and stock measures alone describe its success.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
