Which inventory management approach helps to align stock with demand?

The Just-in-time (JIT) delivery approach is designed specifically to align inventory levels with actual demand. By minimizing excess stock and ensuring that inventory arrives only when it is needed for production or sales, this strategy reduces holding costs and enhances efficiency. JIT relies on accurate demand forecasting and timely replenishment, which allows businesses to react quickly to customer needs while avoiding overstocking or stockouts.

In contrast, other approaches such as FIFO (First In First Out) manage the sequence in which inventory is sold but do not inherently address the alignment of stock levels with current demand. Randomly restocking lacks a systematic methodology and can lead to surplus or inadequate inventory. Similarly, avoiding stock audits prevents businesses from accurately assessing inventory levels and demand trends, resulting in less effective inventory management. Therefore, the Just-in-time delivery method stands out as the most effective strategy for meeting customer demand while controlling inventory costs.