BAD NEWS FOR SUPPLY CHAIN IS – JIT IS GOING HIGHLY DIFFICULT THIS YEAR

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BAD NEWS FOR SUPPLY CHAIN IS – JIT IS GOING HIGHLY DIFFICULT THIS YEAR

Just-in-time (JIT)may be a production strategy within which a corporation solely produces an item when a consumer has created order, thus keeping the inventories low.

While this streamlined approach will prevent prices and increase potency throughout business-as-usual, it’s liable to each offer and demand shocks.

It is closely related to alternative ideas like TQM, Kanban Continuous Process Improvement etc.  JIT aims at manufacturing the precise quantities of things for the precise demand by maintaining simply the precise quantity of inventory each on the material aspect also as on the finished sensible aspect. 

BAD NEWS FOR SUPPLY CHAIN IS - JIT IS GOING HIGHLY DIFFICULT THIS YEAR
  • No 1- It aims at keeping the stock holding to a minimum resulting in an abundant lower inventory price and far lower storage and warehouse price.
  • No 2- Minimum inventory in the slightest degree stages of the supply chain means less expiration and less wastage for the organization. 
  • No 3- Lower inventory means lower investment for identical levels of production. This reduces asset investment to a larger extent. This successively results in better ROI and profit for the organization. 

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Now let’s talk about disadvantages of JIT:

  • No 1- It production is terribly sensitive to any quiet error. Since  minimum inventory levels are maintained, there’s no space for any quiet error.
  • No 2- It production won’t be able to adapt well to step-up in volume of demand from the market, since the inventory levels are maintained at an abundant lower level.
  • No 3- Just-in-time producing may be a philosophy that is achieved if only all the parties concerned within the whole offer chain can work together with coordination.  JIT might fail someday if any of the suppliers fail to fulfil their obligations and answer the necessities in a very timely manner.

JIT may be a philosophy that proposes to attain the most with minimum inputs. This may be achieved as long as all the parties concerned within the entire system chain are going to be committed to attain this and work cohesively with great deal of coordination. JIT would like terribly careful designing and timely communication within the chain. The complete organization should be committed to the current philosophy.

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