Question

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called _____.

Answer 1

Just-in-time (JIT) is the correct answer.

Step-by-step explanation:

• Just-in-time (JIT) is called Just in time manufacturing and also the Toyota production system.

• Just in time is an inventory management technique aimed to increase efficiency and to reduce the waste by receiving the goods that are required and also designed to raise productivity while reducing expenses.

• benefits of JIT inventory management strategy is to improve the cash flow and lower the inventory holding costs.