In inventory management, minimizing stock obsolescence is primarily a goal of which system?

Minimizing stock obsolescence is primarily a goal of the Just-in-time (JIT) system, which is designed to reduce waste, improve efficiency, and ensure that inventory arrives only as it is needed in the production process. By keeping inventory levels low and receiving goods only when necessary for production, JIT minimizes the risk of holding excess stock that can become outdated or obsolete.

In a JIT system, companies aim for a close coordination between suppliers and production schedules. This tight synchronization helps companies respond more rapidly to changes in consumer demand, thereby decreasing the likelihood of carrying products that may lose their value over time. As a result, the focus of JIT is on reducing lead times and cycles, which inherently leads to less inventory in the system and lowers the risk of obsolescence.

Other inventory systems like batch processing, mass production, and agile systems can involve larger stock levels or less flexible responses to market changes, potentially leading to higher rates of inventory obsolescence. For example, batch processing often requires holding a significant amount of inventory in anticipation of production runs, while mass production might produce large quantities of a single product, increasing the risk of stock becoming obsolete if consumer preferences change. Agile systems, which prioritize flexibility and responsiveness, can be