In supply-chain management, what inventory method schedules materials to arrive shortly before production needs them?

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In supply-chain management, the inventory method scheduling materials to arrive shortly before production needs them is just-in-time.

Just-in-time manufacturing aims to reduce inventory by coordinating purchasing and production closely with actual demand. Instead of holding large stocks of components, a company receives materials near the point when they will be used. The approach is strongly associated with the Toyota Production System, where it developed alongside methods for reducing waste and improving flow.

The benefit can include lower storage costs and less obsolete inventory, but the system requires dependable suppliers, accurate scheduling, and stable processes. Disruptions such as transport delays, shortages, or sudden demand changes can interrupt production more quickly when buffers are small. Just-in-time is therefore a coordination strategy, not simply a rule to keep inventory at zero.

Source: Wikipedia · fact-checked Sept. 2026

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