What does just-in-time inventory aim to achieve?

Just-in-time (JIT) inventory management is designed to improve a business's efficiency and decrease waste by receiving goods only as they are needed in the production process. This approach helps to minimize the holding costs associated with storing large quantities of inventory, such as warehousing expenses and the risk of obsolescence.

By timing the arrival of materials or products to coincide closely with consumption, organizations can maintain streamlined operations and reduce their inventory levels. This method aligns with the lean manufacturing principles that focus on creating value and eliminating waste. Thus, the goal of JIT is to maintain just the right number of materials on hand to meet production schedules without requiring surplus stock, which can incur additional costs and risks.