What is a primary advantage of just-in-time inventory management?

Just-in-time inventory management is designed to decrease the amount of inventory on hand at any given time, while ensuring that materials are available when needed for production or sales. This approach allows organizations to minimize the amount of capital invested in inventory, as they avoid the costs associated with holding large stocks of materials. By aligning inventory levels closely with actual demand, businesses can free up cash flow that would otherwise be tied up in unsold goods and surplus materials. This method also reduces storage costs and may lead to less waste, particularly with perishable items. Overall, the focus is on efficiency and responsiveness, making lower inventory levels a key benefit of this strategy.