What purchasing method is best during a department renovation that reduces inventory by 80%?

The just-in-time purchasing method is particularly advantageous during a department renovation that significantly reduces inventory. This method allows for the procurement of goods and supplies as they are needed, minimizing the amount of inventory on hand. Since the renovation process may disrupt operations and space availability, maintaining a lower inventory helps reduce the carrying costs and the risks associated with stockpiling items that may not be utilized immediately.

By utilizing a just-in-time approach, the department can ensure that products arrive as needed, which aligns well with the planned reduction in inventory. This strategy optimizes cash flow and reduces waste, making it ideal for circumstances where storage space is limited or where items may become unnecessary due to changes in the department's layout or function after the renovation.

In contrast, the other purchasing methods may not effectively address the specific needs of a department undergoing significant changes. For example, a cost-plus arrangement may lead to overstocking if items are purchased in larger quantities expecting to use them long-term. Prime vendor agreements can also involve minimum order requirements that might not suit a reduced inventory context. Blanket agreements can lock a department into quantity commitments that may not align with its new operational reality post-renovation. Thus, just-in-time purchasing stands out as the most suitable method in this