Which of the following describes the term “just-in-time” inventory management?

The term "just-in-time" inventory management is best described by the practice of maintaining a lean inventory by receiving goods only when needed. This approach focuses on reducing inventory carrying costs and minimizing waste by ensuring that products are delivered right at the moment they are required for production or sale.

In a just-in-time system, companies aim to synchronize their inventory with customer demand, which allows them to operate with fewer resources and greater efficiency. By ordering only what is necessary, organizations avoid the costs associated with excess inventory, such as storage fees, spoilage, and obsolescence. This method fosters a more agile response to market needs, ultimately leading to improved customer satisfaction and a reduction in financial risk related to unsold goods.