The Return of Just-in-Time: What Retail’s Comeback Means for Inventory Management and Forecasting
The Return of Just-in-Time: What Retail’s Comeback Means for Inventory Management and Forecasting In recent years, the COVID-19 pandemic disrupted global supply chains and forced retailers to rethink how they manage inventory. Many shifted to stockpiling goods to avoid delays, but now, they’re going back to basics. According to a recent Wall Street Journal article, retailers are returning to the just-in-time (JIT) inventory model, a strategy that depends heavily on accurate forecasting and efficient supply chain coordination (Young, 2024). This shift marks a renewed emphasis on inventory management practices, many of which are grounded in concepts taught in business operations courses. Methods like Economic Order Quantity (EOQ) and moving average forecasting are once again at the forefront of decision-making, as businesses seek to lower costs while staying responsive to consumer demand. The JIT strategy aims to reduce inventory holding costs by ordering goods only when they’re n...