Replenishment Planning · 10

Is JIT actually feasible here?

Half the lean-inventory articles you'll read online make JIT sound like a religion. We're agnostic. JIT works for some SKUs, wrecks operations for others, and is genuinely dangerous when there's a single point of failure in the supply chain. Score your situation across 6 dimensions and see if it actually fits before committing.

Supplier reliability Good Lead time OK Demand stability Variable Shelf life Short Single source? Yes Cost of carrying Mid-high Schematic: 6 dimensions × score, color-coded

Why JIT isn't always right

JIT (just-in-time) reduces inventory cost by accepting more risk: smaller safety stock, more frequent smaller orders, tighter coupling to your supplier. Done well, it cuts working capital dramatically. Done poorly, it multiplies the impact of every disruption — a 3-day supplier delay becomes a stockout.

Most operators who fail at JIT fail for one of three reasons: (1) they didn't have a real alternative supplier, so a single hiccup cascaded; (2) their demand was too variable for the formula to be reliable; (3) their carrying cost was already low, so the savings weren't worth the risk.

The 6 dimensions

This calculator scores your situation from 0 (very bad fit for JIT) to 5 (excellent fit) on each of:

Each dimension is weighted by its actual impact on outcome, then summed. The result is mapped to a verdict.

Score each dimension (0 = worst fit, 5 = best fit)

On-time-in-full rate; backup supplier exists; track record.
5 = short & tight; 0 = long and highly variable.
5 = predictable; 0 = lumpy, seasonal, or noisy.
5 = long (no risk); 0 = short shelf life, fast-changing category.
5 = multiple qualified sources; 0 = captive single source.
5 = high carrying cost (JIT saves a lot); 0 = low (less to gain).

How to interpret the score

What this tool doesn't do

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