What is generally the goal of just-in-time (JIT) inventory?

The primary goal of just-in-time (JIT) inventory is to minimize waste and reduce holding costs. This inventory management strategy focuses on receiving goods only as they are needed in the production process, which helps to lower inventory levels and reduce the costs associated with storing excess products. By implementing JIT, companies aim to streamline their operations, enhance efficiency, and improve cash flow since less capital is tied up in unsold inventory.

The JIT approach necessitates close coordination with suppliers to ensure timely deliveries and requires accurate demand forecasting to prevent stockouts and production delays. By aligning inventory levels closely with actual production schedules and customer demand, organizations can significantly cut down on waste from overproduction and obsolete stock.

In contrast, options such as keeping as much stock as possible, causing delays in production, or maximizing delivery time do not align with the foundational principles of JIT, which seeks efficiency and agility in supply chain management.