What does "just-in-time" inventory management aim to do?

"Just-in-time" inventory management focuses on minimizing inventory levels by ordering goods only as they are needed in the production process or for customer demand. This approach helps businesses reduce storage costs and waste by ensuring that inventory arrives just before it is required, allowing for a more efficient and responsive supply chain. By keeping inventory levels low, companies can avoid tying up cash in products that may sit unsold for long periods.

This method aligns with modern business practices that emphasize efficiency and cost savings. It also encourages a strong relationship with suppliers, as timely deliveries become critical to the success of the strategy. By only stocking what is necessary, businesses can also adapt more rapidly to changes in demand and market conditions.

In contrast, other approaches mentioned do not align with the fundamental principles of just-in-time inventory management, as they may focus on increasing costs, bulk purchasing, or logistics management without directly tying into the core aim of minimizing inventory on hand.