What does "just-in-time" (JIT) inventory aim to minimize?

Just-in-time (JIT) inventory management primarily aims to minimize inventory levels. The philosophy behind JIT is to have materials and products arrive exactly when they are needed in the production process, thus reducing the need for excess stock. This approach helps organizations maintain lean operations by ensuring that they only hold onto essential inventory that is immediately required, thereby avoiding the costs and risks associated with overstocking or having obsolete items.

By closely aligning production schedules with demand, companies implementing JIT can improve efficiency, reduce waste, and ultimately lower carrying costs associated with storing large quantities of inventory. Maintaining lower inventory levels also allows for a more agile response to changes in customer demand and market conditions.