Just in time (JIT) - part 2
Taught by Nick Drape · AI tutor support included
You'll learn how just in time systems reduce costs across a business, and specifically which costs decrease when a company switches to JIT. This lesson walks through a worked example that tests your understanding of JIT's impact on inventory, production, and supplier relationships—a common exam question type.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Just in Time cost reduction example
- 0:38 Why informational system costs increase
- 1:31 Raw material and production setup costs
- 2:38 Inventory holding costs explained
- 3:22 Just in Time pull-based system recap
- 3:56 Conditions needed for JIT success
- 4:34 JIT purchasing versus JIT production
About this lesson
You'll discover why informational systems, raw material costs, and production setup costs actually increase under JIT, while inventory holding costs fall significantly. By the end, you'll be confident identifying which cost savings JIT delivers and understanding the two core elements—just in time purchasing and just in time production—that make the system work in practice.
Duration: 5m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the P2 Objective Test course
All 121 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in