Explain the just-in-time (JIT) system of inventory management.
In this system there is no inventory that is held but materials and parts are brought in when they are required. The exact number of parts, therefore, arrives at the factor exactly when they are needed. This system has been greatly successful in Japan (lean manufacturing). Goals—avoid all disruptions along the production process, flexible that it could accommodate quick changeovers, reduce setup times, minimize inventory and eliminate waste. It assumes that the design is optimal the machines are in good condition, the workers are well trained