Business concerns are giving maximum attention to reducing stock levels by establishing cardial relationship with suppliers to arrange for frequent delivery of quantities. This is called JUST-IN-TIME purchasing.Just-in-time purchasing is aimed at obtaining material delivery immediately prior to use. This can be done with the supplier’s cooperation. Buying large quantities is guaranteed by the company. The supplier guarantees good quality materials at reasonable prices. This arrangement helps in directly delivering the material to the shop floor instead of receiving into stores.

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