Which term reflects an inventory strategy that aligns production closely with demand?

The term that best reflects an inventory strategy aligning production closely with demand is Just-in-Time (JIT). This approach emphasizes reducing inventory levels by producing goods only as they are needed in the production process, thereby minimizing waste and reducing storage costs.

JIT focuses on synchronizing the production schedule with demand, allowing for a more responsive and flexible manufacturing process. By producing items at the moment they are required, companies can avoid overproduction and the accumulation of excess inventory, which can tie up capital and resources. This strategy leads to a more streamlined operation, enhances efficiency, and improves the overall responsiveness to customer needs.

Other production strategies, like batch production, mass production, and continuous flow, do not have the same level of alignment with customer demand. Batch production typically produces items in groups or batches, which can lead to excess inventory if demand changes unexpectedly. Mass production creates large quantities of standardized products without the immediate responsiveness to specific demand variations. Continuous flow production is designed for high-volume production with minimal variations, which may not align closely with fluctuating demand. Therefore, JIT stands out as the most effective strategy for aligning production with demand.