What is the primary focus of just-in-time (JIT) inventory management?

Just-in-time (JIT) inventory management primarily aims to reduce inventory costs by ordering stock only as it is needed for production or sales. This approach minimizes the holding costs associated with storing excess inventory and reduces the risk of obsolescence and waste. By synchronizing the arrival of materials with production schedules, JIT helps ensure that resources are used efficiently and that capital is not tied up unnecessarily in inventory.

In contrast, maximizing storage capacity does not align with JIT principles; rather, JIT encourages lean operations and minimizes inventory levels. Ordering stock based on forecasted demand risks overstocking or stockouts, which JIT seeks to avoid by focusing on actual consumption patterns. Increasing supplier lead times would counteract the JIT philosophy, which relies on quick and responsive supply chain practices to ensure that materials arrive precisely when needed.