What is "just-in-time" (JIT) inventory management?

What is "just-in-time" (JIT) inventory management?

• A. A strategy to eliminate all inventory
• B. A strategy to reduce inventory and increase efficiency by ordering supplies as needed
• C. A method for long-term storage of inventory
• D. A system for tracking employee hours and productivity

Answer: (B)

Just-in-time (JIT) inventory management is a strategy aimed at minimizing inventory levels while maximizing efficiency. The core concept of JIT is to order and receive supplies or materials only as they are needed in the production process, thereby reducing the costs associated with holding large amounts of inventory. This approach requires precise planning and coordination with suppliers to ensure that materials arrive exactly when needed, which can help streamline operations, reduce waste, and lower storage costs. In a JIT system, the focus is placed on improving the overall supply chain and logistics processes. By having inventory arrive just in time for production, companies are able to minimize clutter in warehouses and reduce the risks related to excess inventory, such as obsolescence or increased storage costs. This strategy also aligns production with demand, making it highly effective for industries that require agility and responsiveness to customer needs.

Just-in-time (JIT) inventory management is a strategy aimed at minimizing inventory levels while maximizing efficiency. The core concept of JIT is to order and receive supplies or materials only as they are needed in the production process, thereby reducing the costs associated with holding large amounts of inventory. This approach requires precise planning and coordination with suppliers to ensure that materials arrive exactly when needed, which can help streamline operations, reduce waste, and lower storage costs.

In a JIT system, the focus is placed on improving the overall supply chain and logistics processes. By having inventory arrive just in time for production, companies are able to minimize clutter in warehouses and reduce the risks related to excess inventory, such as obsolescence or increased storage costs. This strategy also aligns production with demand, making it highly effective for industries that require agility and responsiveness to customer needs.