What does Just-In-Time (JIT) inventory management aim to achieve?

Just-In-Time (JIT) inventory management focuses on enhancing efficiency by receiving goods only as they are required in the production process. This method minimizes waste and reduces inventory holding costs, leading to a leaner production approach. By aligning inventory levels closely with production schedules, JIT ensures that materials arrive just when they are needed, which helps to improve cash flow and decrease the likelihood of overproduction or excess stock. This systems approach effectively streamlines operations, allowing for a more responsive manufacturing process that can adapt quickly to changing demand.