Summarise four disadvantages associated with Just-In-Time (JIT) inventory management system
- A supplier who does not deliver goods to the company exactly on time and in the correct amounts could seriously impact the production process.
- A natural disaster could interfere with the flow of goods to the company from suppliers, which could halt production almost at once.
- An investment should be made in information technology to link the computer systems of the company and its suppliers so that they can coordinate the delivery of parts and materials.
- A company may not be able to immediately meet the requirements of a massive and unexpected order, since it has few or no stocks of finished goods.