Just-in-Time (JIT) inventory is a management approach that aligns raw-material orders and production schedules directly with upcoming demand. The goal of JIT is to receive goods only as they are needed, which in turn reduces inventory costs and minimizes storage requirements. For example, a manufacturer may employ JIT to have parts delivered to their factory just hours before they are assembled into a finished product. By maintaining lower inventory levels, companies can decrease overhead costs and reduce waste, though it requires very efficient logistics coordination and reliable supplier relationships. JIT is commonly used in industries like automotive manufacturing, where there is a continuous need to balance production capacity and inventory efficiency.