JUST IN TIME (JIT):
JIT is a method to plan the time and optimize the complete supply chain from raw material (production) until the purchase of the good to the end customer.
The basic idea of this method, which was developed in the years around 1980 in Japanese companies, is to decentralize the material procurement and to adjust it in the short run, depending on the manufacturing and order situation. Thus, stocks can be reduced and resulting cost reduction takes place. JIT is mainly used in high volume industries such as automotive industry.
JIT Case example: Production and Logistic of SMART