Evaluating Inventory Management Approaches

ABC Company is evaluating its inventory management strategy to improve its operational efficiency and reduce costs. The management team is considering three key approaches:

1. Just-In-Time (JIT) inventory management, which minimizes inventory levels by ordering more frequently in smaller quantities.

2. Economic Order Quantity (EOQ), which identifies the ideal order quantity that minimizes total inventory holding and ordering costs.

3. Safety stock, which involves maintaining a buffer of additional inventory to prevent stockouts during unexpected demand spikes.

Given these options, which inventory management approach is most effective in balancing inventory holding costs and ensuring product availability during fluctuating demand?