Just-In-Time (JIT) is a production strategy that aims to improve a business's return on investment by reducing in-process inventory and associated carrying costs. By receiving goods only as they are needed in the production process, companies can increase efficiency and decrease waste, but it requires precise demand forecasting and reliable suppliers.

Just-In-Time

production strategy

Return on investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment by comparing the net profit relative to the original cost. It is crucial for investors and businesses to assess the potential returns and make informed decisions about where to allocate resources for maximum gain.

return on investment

in-process inventory

Carrying costs refer to the total expenses associated with holding inventory over a period, including storage, insurance, depreciation, and opportunity costs. Understanding these costs is crucial for businesses to optimize inventory levels, minimize expenses, and maximize profitability.

carrying costs

Goods Receipt

The production process is a series of interrelated steps that transform raw materials into finished goods or services, optimizing resources to meet consumer demand efficiently. It involves planning, execution, and control to ensure quality, cost-effectiveness, and timely delivery of products.

production process

Efficiency is the ability to achieve a desired outcome with the least amount of wasted resources, such as time, energy, or materials. It is a critical factor in both economic systems and engineering processes, driving innovation and competitiveness by maximizing output while minimizing input.

efficiency

Waste reduction involves minimizing the amount of waste generated by altering production processes, encouraging resource efficiency, and promoting sustainable consumption. It is crucial for environmental sustainability, reducing landfill use, conserving natural resources, and mitigating the impacts of pollution and climate change.

Waste Reduction

Demand forecasting is the process of predicting future customer demand for a product or service, which helps businesses make informed decisions about production, inventory, and sales strategies. Accurate demand forecasting enables companies to optimize resources, reduce costs, and improve customer satisfaction by ensuring product availability and minimizing overstock or stockouts.

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