Question

One potential drawback of just-in-time (jit) production is that

Answer 1

One potential drawback of just-in-time (jit) production is that the company would face disruptions in the supply chain if the supplier of raw materials could not deliver the required materials on time.

Explanation:

The management strategy that aligns raw-material orders from suppliers directly with production schedules. This strategy is employed in many companies to reduce the wastage and to increase the efficiency. It requires an accurate forecast of the demand by the production team of the firm so that the production requirements can be initiated accordingly.

In spite of all the advantages like reducing the inventory costs (like warehousing, etc.) or easily spotting production mistakes, great focus on quality, etc, this method also has the following disadvantages,

• If the suppliers could not deliver the required materials on time, the entire production process will be stalled.

• Natural calamities could also intervene in the flow of materials from the supplier side

• Massive unexpected demands from the customer side cannot be managed.