• Just in time purchasing is a major component of JIT manufacturing system. The basic concept of JIT purchasing is to establish agreement with vendors to deliver small quantities of materials/parts just in time for production. This approach is quite contrast to traditional approach of bulk buying.
• We have found in buying materials that it is not worthwhile to buy for other than immediate needs. We buy only enough to fit into the plan of production, taking into consideration the state of transportation at the time. If transportation were perfect and an even flow of materials could be assured, it would not be necessary to carry any stock whatsoever. The carloads of raw materials would arrive on schedule and in the planned order and amounts, and go from the railway cars into production. That would save a great deal of money, for it would give a very rapid turnover and thus decrease the amount of money tied up in materials.
• Toyota adopted JIT in the Toyota Production System (TPS), as a means of eliminating the seven wastes. However, it was not at the Ford Motor Company that Toyota representatives saw the JIT model in action. When Toyota toured plants in the United States in 1956, Ford had not yet fully implemented the JIT model. It was at Piggly Wiggly, the first self-service grocery chain, that Toyota representatives saw JIT demonstrated and that was the model they based their system on.

The features of JIT purchasing are:

• Reduced lot sizes
• Frequent and. reliable delivery schedules.
• Reduced and highly reliable lead times.
• High quality level of purchased parts.