Certified Logistics Technician (CLT) 2025 – 400 Free Practice Questions to Pass the Exam

The Just-in-Time (JIT) inventory control system is designed to minimize inventory levels while ensuring that demand is met efficiently. The primary goal of JIT is to reduce waste by receiving goods only as they are needed in the production process, which allows companies to keep inventory levels low. This approach requires careful planning and precise timing in the supply chain to ensure that materials arrive exactly when they are needed, thereby reducing holding costs and excess inventory.

In contrast, other inventory control systems serve different purposes. First-In, First-Out (FIFO) is a method for managing inventory by ensuring that the oldest stock is used or sold first. Reorder Point focuses on determining the specific inventory level at which new stock should be ordered to avoid running out of inventory. Lastly, Safety Stock is an additional quantity of inventory held to mitigate the risk of stockouts due to fluctuations in demand or lead time. While these systems are essential for inventory management, they do not prioritize minimizing inventory levels in the same way that Just-in-Time does.