What method is commonly used for inventory that involves ordering products just before they are depleted?

The method commonly used for inventory that involves ordering products just before they are depleted is known as just-in-time inventory. This approach focuses on reducing waste and improving efficiency by ordering stock only as it is needed in the production process or to meet customer demand. By timing orders precisely, businesses can minimize excess inventory and storage costs, ensuring that they have the right amount of stock available at the right time.

In contrast, safety stock management involves maintaining a buffer of extra inventory to account for variability in demand or supply. This method does not necessarily rely on ordering just before items are depleted, but rather on ensuring there is always an additional safeguard should unexpected changes occur.

Minimum and maximum levels refer to a control system used in inventory management where specific thresholds are established for when to reorder stock. This method helps in planning, but it does not emphasize the timeliness of the order as much as just-in-time inventory does.

The FIFO method (First-In, First-Out) is an inventory valuation and management strategy that ensures the oldest stock is sold first to prevent spoilage or obsolescence. While important for handling perishable or time-sensitive goods, it does not inherently focus on the timing of order placements in relation to inventory depletion.

In summary, just-in-time inventory is