Definition

Just in Time stock control originated in Japan. Instead of holding stock at the factory, the businesses would only order stock on a Just in Time basis (raw materials are ordered only as they are needed).

Disadvantages of Just in Time

• If supplies are disrupted for some reason, the business will have no stock to fall back on.
• This will affect their production rates very quickly.

Advantages of Just in Time

• There is less stock in the factory, so costs are lower.
• This results in a lower unit cost.