What is defined as a strategy aimed at reducing inventory carrying costs?

Just-in-Time (JIT) is designed to minimize inventory carrying costs by coordinating the production and delivery of goods so that materials are received just as they are needed in the production process. This strategy encourages having minimal stock on hand, which reduces storage costs and lowers the risk of inventory obsolescence. By synchronizing inventory levels closely with production schedules, JIT allows companies to maintain efficiency and reduce waste associated with excess inventory, ultimately leading to significant cost savings.

While other strategies and concepts like FIFO, Third-Party Logistics, and Supply Chain Optimization are important in inventory and supply chain management, they do not specifically prioritize the reduction of inventory carrying costs in the same direct manner as JIT. FIFO focuses on the rotation of inventory to prevent spoilage, Third-Party Logistics involves outsourcing logistics functions to improve efficiency, and Supply Chain Optimization is a broader strategy that encompasses various elements including cost, efficiency, and service levels, without being solely focused on inventory carrying costs.