Just In Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs, says Wikipedia.org.
The process is driven by a series of signals, or Kanban, that tell production processes when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency.
New stock is ordered when stock drops to the re-order level. This saves warehouse space and costs. However, one drawback of the JIT system is that the re-order level is determined by historical demand. If demand rises above the historical average demand, the firm will deplete inventory faster than usual and cause customer service issues.
Thus store clerks do not "Go to the back" to replenish stock today. Closets and warehouses are kept empty by businesses trying to be competitive. When an item is depleted retailers will fill customers needs by saying "We will order it. Should arrive in 5 to 7 days."
In other words, beware the assumption that a store will carry plenty of copies of the Rand McNally Quick Reference World Atlas. Call before you go, please.
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