Define the term 'Just in Time' (JIT).

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2019). The mark or mark type is shown in brackets.

1. [1] A method of managing inventory / a method of production / a production or manufacturing process
2. [1] Ordering supplies / materials / inventory only when required / according to the level of production / only when a customer order has been placed
3. [1] Purchasing only the amount of inventory that is forecast to be sold
4. [1] Aims to avoid holding inventory / reduces the amount of stock held at any one time
5. Stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum
6. Less stock holding reduces storage space and saves rent/insurance costs
7. Less working capital tied up in stock as stock is only bought when needed
8. Less likelihood of stock perishing, becoming obsolete or out of date
9. Better able to keep up with changing trends and customer demand than with more long-term production methods
10. Avoids build-up of unsold finished product if demand suddenly changes
11. Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time