What does Just-In-Time inventory seek to eliminate?

Just-In-Time (JIT) inventory is a strategy that focuses on minimizing inventory levels and reducing storage costs by ordering materials only when they are needed in the production process. The primary objective of JIT is to eliminate excess inventory, which can tie up valuable financial resources and lead to increased costs associated with storage, handling, and potential obsolescence. By streamlining inventory management, organizations can achieve greater efficiency and flexibility, ensuring that materials arrive precisely when they are required, thereby reducing the need for large storage spaces and the associated overhead. This approach enhances overall operational performance and helps in aligning production closely with customer demand.