What inventory management and operational control approach aims to minimize holding costs by ordering materials only as needed for immediate production?
AMaterial Requirements Planning (MRP)
BEconomic Order Quantity (EOQ)
CJust-in-Time (JIT)
DABC Inventory Analysis
Explanation
• Just-in-Time (JIT), pioneered by Toyota, aligns material arrivals directly with production schedules to minimize inventory holding costs.
• It reduces waste, inventory storage space, and working capital requirements.
• JIT requires highly reliable suppliers and seamless supply chain coordination.
Exam Relevance
- Topic: Operations Management
- Subtopic: Inventory Management

No Comments