Just in Time Inventory Management

The video explains the dynamics between retailers and suppliers in traditional pull-based inventory systems and introduces the just-in-time (JIT) inventory system. JIT allows retailers to order inventory based on immediate consumer demand, reducing the need for large stockpiles. This system benefits both retailers and suppliers by minimizing holding costs and enabling continuous production processes. It also enhances operational efficiency by reducing work-in-progress inventory and improving quality assurance. The video highlights the advantages of JIT, such as reduced safety stock and improved supply chain logistics.

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