What is the main goal of a Just-In-Time (JIT) inventory strategy?

The primary goal of a Just-In-Time (JIT) inventory strategy is to align raw-material orders with production schedules. This approach aims to reduce waste by ensuring that materials are received precisely when they are needed in the production process, rather than being held in excess inventory. By synchronizing orders and production, companies can lower holding costs, minimize storage space requirements, and improve cash flow. This method supports lean manufacturing principles, where the focus is on efficiency and reducing lead times.

Additionally, JIT helps in responding swiftly to customer demand, as organizations are encouraged to maintain minimal inventory levels, which can lead to a more agile and responsive supply chain. This strategy fundamentally transforms how companies manage their inventory and production processes, emphasizing the importance of timely material availability without unnecessary excess.