Which stock management approach minimizes inventory by ordering only what is needed for production?

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

Answer: (B)

The approach that minimizes inventory by ordering only what is needed for production is Just-in-time. It shifts the goal from holding large stocks to receiving materials exactly as they are required in the production process, which keeps inventory very low and reduces carrying costs and waste. This works best when you have reliable suppliers, precise scheduling, and good communication across the supply chain, because any delay can stop production.

Just-in-case would keep extra stock as a precaution, so it wouldn’t minimize inventory. EPOS is a sales-tracking technology that can inform replenishment decisions, but it isn’t by itself the stock-management method that minimizes inventory. A reorder level is a trigger within a broader system that tells you when to place an order; it helps manage stock but doesn’t by itself minimize inventory like Just-in-time does.