Question

The concept just-in-time (JIT) works well if a company works with lots of suppliers. It also helps avoid the breakdowns that occur when operating with an enterprise resource planning system.A. TrueB. False

Answer 1

Answer:

False

Explanation:

The just in time (JIT) system was developed by Toyota in order to decrease inventory costs and improve overall efficiency. Since a car manufacturer uses tens of thousands of different parts and supplies, they have a lot of suppliers and the JIT works perfectly for them. So the first part is true.

But the main disadvantage with JIT systems is that it increases stockout and breakdown risks. Since the whole process must work very smoothly, any disruption can cause a lot of problems.