Question: Many companies implemented Just - in - Time supply chains in order to match supply close to actual demand and minimize working capital. However, the
Many companies implemented JustinTime supply chains in order to match supply close to actual demand and minimize working capital. However, the global pandemic disrupted supply in several industries which, in turn, led to shortages. This was mainly the result of:
JustInTime systems demand immediate communications in the supply chain, and supply disruptions caused major interruptions in these communications.
The JustinTime emphasis on a constant flow of products meant that any shortages were very minimal.
JustinTime systems only work if customers order in standard lot sizes, and the pandemic led to variable order sizes.
JustinTime drives for less safety stock and inventory in the system and hence supply disruptions meant there was less inventory to service customer demand.
Shipping companies give priority to those companies that do not use JustInTime operations.
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