Low inventory production system, also known as Stockless Production, using Pull Scheduling to replenish downstream operations with work-in-process inventory as demanded. JIT matches the pace of production closely with customer demand to minimize inventory levels and reduce Cycle Times. JIT aims to deliver products and services to the customer only as they are requested or needed.
A JIT system is tightly linked, with little or no buffer inventory between workstations and little tolerance for variability, so several interdependent conditions are required in order to function:
Small Lot Sizes
Supplier Network Proximity