Which inventory management technique uses the minimum quantity required to avoid stockouts?

The inventory management technique that uses the minimum quantity required to avoid stockouts is known as the order point strategy. This approach involves establishing a specific inventory level, or reorder point, that triggers the placement of a new order when stock reaches this minimum threshold. By doing so, it ensures that the business has enough inventory on hand to meet demand without running the risk of stockouts, which could disrupt operations and lead to lost sales.

In contrast, just-in-time (JIT) focuses on reducing inventory levels by receiving goods only as they are needed in the production process, emphasizing efficiency and reducing carrying costs rather than setting a specific minimum level to avoid stockouts. Batch processing pertains to production methods rather than inventory management and does not inherently address stock levels. Economic order quantity (EOQ) is a formula used to determine the optimal order size that minimizes total inventory costs, but it does not specifically dictate the situation for stockouts. The order point strategy specifically targets the need to maintain a minimum level to ensure inventory availability, making it the correct answer.