JIT is an abbreviation for Just in Time operations. This is a procedure developed by the Japanese for the management of inventory and stock in a company. The aims of this inventory management system are to decrease the costs related to managing inventory while increasing the efficiency of the operations by speeding tit and giving it cost efficiencies.
The warehousing costs can be reduced through the employment of Just in Time inventory management by eliminating the stock that is held in warehouse therefore reducing the costs. The process for Just in Time involves the inventory storage to be eliminated at the point or the location of operations. Instead it is shipped and transported to the operation point at regular intervals in time with the finishing of the last units. This makes the inventory to be available at the moment when it is required. However this requires very efficient planning in terms of operation scheduling and the optimal amount of stock required for one production run.