Business – 4.2 Inventory management – Just in Time (JIT) | e-Consult
4.2 Inventory management – Just in Time (JIT) (1 questions)
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| Performance Indicator | Before JIT | After JIT |
| Average inventory days | 45‑60 days | 15‑25 days |
| Inventory holding cost (% of sales) | 8‑10% | 3‑5% |
| Production lead time | 4‑6 weeks | 1‑2 weeks |
The table illustrates how JIT typically shortens inventory cycles, reduces holding costs, and accelerates lead times, thereby enhancing overall operational efficiency.