What inventory philosophy employs a trigger to signal when products should be ordered?

The inventory philosophy that employs a trigger to signal when products should be ordered is Just-in-Time (JIT). JIT focuses on reducing inventory levels and increasing efficiency by producing goods only as they are needed in the production process. This approach relies on precise timing for inventory replenishment, where the “trigger” can be understood as a point in time or a level of inventory that indicates a need to order more supplies to prevent production delays or stockouts.

In the context of JIT, this trigger is critical as it minimizes excess inventory and associated holding costs, ensuring that materials arrive right before they are required in the manufacturing process. This reduces waste and contributes to more streamlined operations.

On the other hand, Enterprise Resource Planning (ERP) is a broader system used to manage business processes and may include inventory management as one of its functions, but it does not inherently signify a trigger for ordering. Material Requirements Planning (MRP) involves planning inventory needs based on forecasts and production schedules but does not operate solely on a pull-based trigger system. Economic Order Quantity (EDQ) is a calculation used to determine the optimal order quantity that minimizes total inventory costs, but it does not focus on a direct trigger mechanism for ordering products. Thus, the defining characteristic of J