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 Just-in-Time 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:
Just-In-Time systems demand immediate communications in the supply chain, and supply disruptions caused major interruptions in these communications.
The Just-in-Time emphasis on a constant flow of products meant that any shortages were very minimal.
Just-in-Time systems only work if customers order in standard lot sizes, and the pandemic led to variable order sizes.
Just-in-Time 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 Just-In-Time operations.
 Many companies implemented Just-in-Time supply chains in order to match supply

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!