Which stock management approach aims to minimize inventory by receiving goods only as needed in production?

• A. Just-in-time (JIT)
• B. Just-in-case (JIC)
• C. Electronic point of sale (EPOS)
• D. Reorder level

Answer: (A)

This question tests the just-in-time approach, a pull-based stock system where materials are received only as they are needed for production, keeping inventory very low. It’s best because it directly reduces holding costs, space requirements, and waste, helping to free up cash and improve efficiency. By aligning purchases with actual production demand, businesses try to avoid overstocking and obsolescence, and it often drives tighter supplier relationships and more precise scheduling. However, it does require reliable suppliers and smooth production planning; any delay or disruption can lead to production stoppages due to a lack of materials.

Just-in-case would aim to hold larger stocks as a safeguard against disruptions, which is the opposite idea. Electronic point of sale is a system for recording sales data, not a stock strategy. Reorder level is simply the trigger point to reorder and doesn’t describe the broader inventory approach.