Just-In-Time (JIT) Inventory System is a type of inventory management system designed to reduce the amount of inventory a business holds while still being able to meet customer demands. It works by having parts and materials delivered as and when they are needed, rather than in bulk or at predetermined intervals. This helps cut costs associated with storing excess stock and avoids the risk of overstocking products that may never be sold. JIT also increases efficiency and reduces waste, as only what is needed is ordered. This creates a leaner, more agile supply chain, saving money and improving customer relationships.