How does just-in-time (JIT) inventory management primarily function?

Just-in-time (JIT) inventory management is designed to increase efficiency and decrease waste by receiving goods only as they are needed in the production process. This approach helps to reduce inventory costs, as it minimizes the amount of stock held at any given time. By having inventory delivered right when it is needed, businesses are able to streamline operations and maintain a more organized inventory system.

This method relies heavily on accurate forecasting and strong supplier relationships, allowing businesses to respond quickly to demands without holding excessive stock. JIT also enhances cash flow because money is not tied up in inventory that is not actively being used. Thus, option B accurately captures the essence of how JIT functions by emphasizing that inventory is delivered precisely when required, fostering a leaner and more efficient supply chain management process.