Question: need explaination for each drawback of JIT pls help me - If JIT is not implemented properly, it can create supply chain disruptions, which, in
need explaination for each drawback of JIT pls help me
- If JIT is not implemented properly, it can create supply chain disruptions, which, in turn, may hamper the production process. - In JIT, costs of parts is generally constant. In some situations, where unexpected price changes such as rise in price of parts, happen, then profit margins may get reduced or dropped. - While implementing JIT, there may rise order issues due to the shortages and stock-outs, which may hamper inventory systems. - Generally, JIT depends on local sourcing, which sometimes may cost more due to some reasons. This over-dependency may also impact the overall profitability, due to the pursuit of reliability. - While implementing JIT, supplier dependence is more. If a supplier doesn't provide on-time delivery of required goods or parts, and in right quantities, this may hamper the entire production process. of an organization. - In the scenario of JIT philosophy, acts of nature may also play a crucial role, such as, a natural disaster impacting a supplier's flow of goods, may hamper the entire production process
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