The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as:

The traditional approach to inventory management to ensure sufficient quantity on hand to maintain production is known as Just-In-Time (JIT) inventory management.

Here are the steps to explain this approach:

1. Understanding the Concept: Just-In-Time (JIT) is an inventory management method whereby materials, goods, and labor are scheduled to arrive or be replenished exactly when needed in the production process.

2. The Goal: The main goal of JIT is to improve a company's return on investment by reducing non-essential costs.

3. The Process: Companies using a JIT inventory process keep track of each item of inventory very closely. When the inventory level of a particular item falls below a certain point, a new order is placed.

4. The Benefits: JIT inventory systems have several advantages over traditional models. Production runs remain short, which means that manufacturers can quickly change from one product to another. This allows them to respond faster to market demands.

5. The Challenges: However, JIT inventory management isn't without its risks. For example, if a raw material supplier has a breakdown and cannot deliver the goods in a timely manner, this could stall the entire production process.

6. The Conclusion: Despite the risks, many companies find that the benefits of JIT inventory management outweigh the potential disadvantages. It's a strategy that requires careful management, but when done correctly, it can lead to significant improvements in efficiency and productivity.