What does the Just in Time method prioritize?

What does the Just in Time method prioritize?

• A. Building safety stock
• B. Ordering products only as needed to meet demand
• C. Maintaining high inventory levels
• D. Increasing supplier lead times

Answer: (B)

Just-in-time prioritizes getting materials only when they are actually needed to meet current production demand, keeping inventory very lean. It works as a pull system: replenishment is triggered by actual demand rather than pushing large quantities into the system. This approach reduces carrying costs, storage space, and waste, but it requires highly reliable suppliers and tight process control. Because the focus is on minimal on-hand inventory, building safety stock or maintaining high inventory would contradict JIT, and allowing longer supplier lead times would disrupt the timely flow.

Just-in-time prioritizes getting materials only when they are actually needed to meet current production demand, keeping inventory very lean. It works as a pull system: replenishment is triggered by actual demand rather than pushing large quantities into the system. This approach reduces carrying costs, storage space, and waste, but it requires highly reliable suppliers and tight process control. Because the focus is on minimal on-hand inventory, building safety stock or maintaining high inventory would contradict JIT, and allowing longer supplier lead times would disrupt the timely flow.