Just-in-time inventory is a management strategy that aims to reduce waste by receiving goods only as they are needed in the production process. This approach minimizes the amount of inventory held, which can lower storage costs and reduce the risk of overstocking or obsolescence. By coordinating supply chain activities closely, companies can ensure that materials arrive just in time for production. This method requires strong relationships with suppliers and efficient logistics to maintain a smooth flow of goods, ultimately leading to increased efficiency and cost savings for businesses.