Which statement best describes the concept of "Just-In-Time" (JIT) inventory?

The concept of "Just-In-Time" (JIT) inventory is best described by the approach to minimize stock levels by aligning orders with production schedules. This strategy emphasizes the importance of having the right amount of inventory at the right time to meet production needs without holding excess stock. By synchronizing inventory delivery with production schedules, businesses can reduce storage costs, minimize waste, and optimize cash flow.

In a JIT system, materials are delivered just as they are needed for production, which helps to create a leaner inventory management process. This practice allows companies to respond quickly to demand changes and enhances overall efficiency. The focus is on reducing excess, thus supporting the workflow without interruptions. JIT is widely used in manufacturing and distribution to maintain a streamlined operation and improve productivity.