Just-in-Time (JIT) is a production approach that aims to what?

• A. Producing goods only when needed to reduce inventory levels.
• B. Maintaining large inventories to prevent stockouts.
• C. Forecasting demand only on a yearly basis.
• D. Outsourcing production to third parties.

Answer: (A)

Just-in-Time focuses on producing goods only when they are needed, so inventory levels stay as low as possible. This pull-based approach means raw materials, work-in-progress, and finished goods are replenished in really small, timely amounts rather than kept in large stockpiles. By aligning production tightly with actual demand, waste from overproduction is reduced, carrying costs drop, and the process becomes more responsive to changes in customer needs. Keeping large inventories contradicts this idea, since JIT intentionally minimizes stock. Relying on yearly demand forecasts isn’t the point either, because JIT uses real-time demand signals to trigger replenishment. Outsourcing production isn’t a defining feature of JIT; the method centers on timing and flow, not who actually makes the items.