What does the “just-in-time” (JIT) inventory management strategy aim for?

The "just-in-time" (JIT) inventory management strategy is designed to streamline operations by reducing inventory levels and minimizing waste. The primary goal of JIT is to receive goods and materials only as they are needed in the production process or sales, rather than keeping large stockpiles of inventory on hand.

This approach allows businesses to lower costs associated with storage, handling, and potential obsolescence of unsold goods. By closely aligning purchasing and production schedules, JIT facilitates a leaner, more efficient supply chain, ultimately improving cash flow and responsiveness to customer demand.

In contrast, maintaining high inventory levels, minimizing transportation costs, or maximizing warehouse space usage would not align with the principles of JIT, which focuses specifically on reducing stock levels to enhance efficiency and responsiveness.