Define "Just-in-Time" (JIT) inventory strategy.

The "Just-in-Time" (JIT) inventory strategy is focused on aligning inventory levels closely with production schedules. This approach minimizes stock levels by ensuring that materials and products arrive exactly when they are needed in the production process, rather than being stockpiled in advance. This strategy helps reduce holding costs, waste, and the likelihood of excess inventory that may become obsolete.

By synchronizing inventory with demand and production cycles, JIT enables companies to respond quickly to changes in market demand and increases operational efficiency. This method is particularly beneficial for businesses with fluctuating needs, as it reduces the risks associated with overproduction and underutilization of resources. By implementing JIT, companies aim to achieve a more streamlined workflow, reduced lead times, and improved cash flow.