Final answer:
d. just-in-time
The just-in-time (JIT) inventory management strategy is designed to minimize inventory costs and improve efficiency by scheduling materials to arrive precisely when needed for production.
Step-by-step explanation:
The method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production is known as just-in-time (JIT) inventory management.
This approach was widely adopted in the 1980s by American car manufacturers following the Japanese business innovation. The JIT method reduces the need for warehousing, lowers storage costs, and improves quality control, as issues with parts become evident immediately.
It requires suppliers to be located within a day's drive of the main assembly plant to ensure timely delivery of parts. The adoption of JIT can lead to significant economic benefits, such as a reduction in idle stock and a more streamlined production process.