Just in time (JIT)
The just-in-time concept is a theory of material flow optimisation, which is aimed in particular at reducing the amount of tied up capital.
The aim of this strategy is to have purchased parts delivered only when they are needed in production. As a result, the creation of uneconomical storage spaces can be avoided and at the same time the material tied up by components can be reduced. Disadvantages include the high susceptibility to faults and the higher demand for coordination between the partners involved.
