Which inventory management method is designed to reduce inventory levels while sustaining product availability?

The stockless inventory management method is specifically designed to minimize inventory levels while ensuring that product availability is maintained. This approach emphasizes efficiency and responsiveness in the supply chain by keeping minimal on-hand inventory and relying on suppliers to deliver products just in time for use. By reducing the amount of inventory stored, organizations can lower storage costs, decrease wastage, and improve cash flow, which aligns with the goal of sustaining product availability without the drawbacks of excess stock.

Vendor-managed inventory and consignment are also effective in managing inventory, but they may not strictly focus on reducing inventory levels in the same way that stockless inventory does. Vendor-managed inventory involves suppliers taking responsibility for managing their products within a retailer's inventory, which can enhance availability but may not necessarily reduce inventory levels effectively. Consignment enables a business to hold stock owned by a supplier until sold, which can alleviate some inventory holding risks, but again, it does not inherently minimize the stock held.

Excess Inventory Management focuses on managing surplus inventory that is not being utilized, which is contrary to the objective of reducing inventory levels while ensuring product availability. Thus, stockless inventory stands out as the method specifically tailored to strike this balance.