In terms of inventory control, which practice minimizes holding costs?

Just-In-Time (JIT) delivery is a crucial inventory management strategy that aims to minimize holding costs by delivering goods only as they are needed in the production process, rather than stockpiling them in advance. This approach reduces the amount of inventory held at any given time, thereby lowering the expenses associated with storage, insurance, and spoilage.

By receiving materials and components just when they are required, JIT helps companies maintain leaner inventory levels, reducing waste and the cost related to excess inventory. It encourages more efficient use of space and resources, allowing businesses to allocate their capital towards other areas rather than tying it up in unsold goods.

In contrast, bulk purchasing may lead to lower per-unit costs but can significantly increase holding costs since larger quantities often require more storage space and higher capital investment. Standardized packaging improves efficiencies but does not directly address inventory levels or holding costs. Frequent ordering might increase the frequency of orders but can lead to higher overall costs in terms of shipping and handling, thus not effectively minimizing holding costs.

In summary, JIT delivery stands out as the most effective means for minimizing holding costs in inventory control practices by aligning inventory levels closely with production demands.