Question

Goods arrive when needed for production, use or sale rather than sitting in storage

Answer 1

Answer:

Just-in-time inventory management strategy

Explanation:

Just-in-time (JIT) is an inventory management approach where materials are availed when they are needed in the production process. Under this strategy, there is no storing of materials in a store. An organization will have minimal or nil inventory levels. The purchasing of materials is planned to coincide with the production process.

JIT requires accurate forecasting of production requirements. It needs reliable suppliers able to supply materials as ordered. The production process is demand-driven. The business manufactures the quantities to be sold then, as there is no storage of finished products. JIT increases efficiency by cutting down inventory management costs and wastage associated with inventory storage.