Just-In-Time (JIT) is an inventory management approach that primarily aims to reduce which of the following?

• A. Customer satisfaction
• B. Lead time to the market
• C. Inventory carrying costs and waste
• D. Product diversification

Answer: (C)

Just-In-Time focuses on delivering materials and producing only what is needed, exactly when it is needed. By pulling items through the process and keeping minimal inventories, the system reduces the costs tied to holding stock—like storage space, insurance, and capital tied up in unused materials. It also drives waste out of the process by preventing overproduction, excess handling, and idle time, and by emphasizing quality so defects don’t require rework or scrap. In short, cutting inventory carrying costs and eliminating waste are the core outcomes JIT targets, making that the best fit.

Customer satisfaction can improve as a downstream effect, and lead times may shrink with smoother flows, but those are not the primary aim. Product diversification tends to add complexity rather than align with JIT’s emphasis on lean, predictable flow.