What is the primary objective of Just-In-Time (JIT) inventory management?

The primary objective of Just-In-Time (JIT) inventory management is to minimize inventory waste and reduce holding costs. JIT is a strategy that aims to align production schedules with actual customer demand. This approach allows companies to maintain minimal inventory levels, which helps reduce costs associated with storing and managing excess inventory. By keeping inventory low, organizations can respond more quickly to market changes and customer needs, leading to higher efficiency and reduced waste.

Additionally, minimizing holding costs is crucial to improving overall business performance because it frees up capital that can be used for other investments or expenses. JIT emphasizes the importance of delivering the right amount of product at the right time, ensuring that resources are used effectively while maintaining product quality.