H& m has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems. the firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it. this is an example of a(n) inventory system.

Explanation:

Just in time or JIT is an inventory management strategy that aims at availing goods or raw materials when they are needed for production. JIT aligns materials delivery schedules with the production timetable. This strategy increases efficiency and reduces wastage by ordering goods only when they are required.

For just in time strategy to be successful, a business must have reliable suppliers. Purchasing inventory in bulk holds a lot of capital. By implementing JIT, a company will manage its cash flow better. JIT helps reduces wastage as items stored in bulk are likely to get damaged or lost.

H&M has adopted a Just in time inventory management strategy due to the low level of merchandise held. Frequent ordering suggests that the orders are based on requirements. H&M must be keen on its order management strategy to avoids the risks of frequent stock-outs.

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