just-in-time inventory

just-in-time inventory definition - business

just-in-time inventory

Maintaining a very low inventory level by coordinating production schedules with suppliers who deliver materials as they are required. Just-in-time inventory reduces a manufacturer's costs of production, but increases the risk that an interruption in the supply of materials will cause production to grind to a halt. See also zero inventory.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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