Question

What impact does JIT (Just In Time) have on inventory management?

Answer 1

JIT increases effeciency and decreases waste by recieving goods as only needed in the production process which in-turn reduces inventory costs

Just In Time inventory control has several advantages. This method reduces costs by eliminating warehouse storage needs. Companies spend less on raw materials as they buy just enough to make the products and no surplus.

Production runs are short which allows the manufacturers to move from one product to another very easily

Disadvantages are : disruptions in supply chain. If a raw material supplier doesn't deliver on time, entire production process has to be stopped.

A sudden order which exceeds expectations can lead to delayed delivery of products to the customer