Which term denotes inventory arriving exactly when needed to minimize storage costs?

• A. EDI
• B. Transportation
• C. Distribution Center
• D. Just-in-Time (JIT)

Answer: (D)

The concept being tested is a system that delivers materials exactly when they are needed, reducing the amount of stock held and the costs of storing it. This is Just-in-Time, a strategy that aligns supplier deliveries with production schedules or customer demand so little or no extra inventory sits in storage. By receiving items only as they are required, carrying costs, obsolescence risk, and space needs drop, improving cash flow and efficiency.

Electronic Data Interchange is about exchanging business documents electronically, not the timing of inventory. Transportation refers to moving goods from one place to another and, while important for lead times, it doesn’t define the inventory arrival strategy. A Distribution Center is a facility for storing and distributing goods, which inherently involves some storage, rather than specifying the on-demand arrival approach.