Lesson Plan

• Describe the key principles of Just‑in‑Time (JIT) inventory management and contrast them with traditional systems.
• Explain the financial, operational and strategic impacts of adopting JIT on a business.
• Analyse a simple carrying‑cost calculation to quantify potential savings from JIT.
• Evaluate common risks of JIT implementation and propose appropriate mitigation strategies.
• Apply an implementation checklist to design a pilot JIT rollout for a product line.

• Projector and screen
• Whiteboard and markers
• Printed handout summarising JIT principles
• Case‑study worksheet (Toyota Production System)
• Calculator worksheets for carrying‑cost calculations
• Demand‑forecasting software demo screenshots
• Implementation‑checklist template
• Exit‑ticket cards

Begin with a quick poll: “How much of a company’s budget is tied up in inventory?” Use the responses to highlight the hidden cost of excess stock. Review students’ prior knowledge of basic inventory costs, then outline today’s success criteria – students will be able to describe JIT, calculate its cost impact, and design a simple implementation plan.

1. Do‑now (5’) – Students list three costs associated with holding inventory.
2. Mini‑lecture (10’) – Slides covering JIT definition, key principles and the three impact categories (financial, operational, strategic).
3. Guided calculation (8’) – Work through the carrying‑cost formula using the provided numbers; students complete a short worksheet.
4. Case‑study analysis (12’) – In groups, examine the Toyota example, fill out the worksheet, and discuss how the metrics changed.
5. Implementation checklist activity (10’) – Each group drafts the first three steps of a JIT rollout for a chosen product line using the template.
6. Risk‑mitigation discussion (8’) – Whole‑class brainstorm of potential JIT risks; teacher records mitigation ideas.
7. Exit ticket (5’) – Students write one major benefit and one major risk of JIT for a business.

Recap the key take‑aways: JIT can dramatically lower carrying costs and improve responsiveness, but it requires reliable suppliers and accurate forecasting. Collect exit tickets to gauge understanding, then assign homework – research a local business that could benefit from JIT and write a brief report outlining expected advantages and possible challenges.