What Are The Advantages And Disadvantages Of Just In Time

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Today, numerous companies are willing to keep or own their particular inventory in order to fulfil endless satisfaction of consumers. However, these stocks may be costly in terms of prices and their performance. For example, these stocks may be stolen, lost, damaged, out-dated, deteriorate and so on. They may also require huge number of capital to keep them in respective stores. Moreover, it may not be a wise way as changing demand in economy. After all, this action may occur financial loss to the business.

By encountered this problem, Taiichi Ohno of Toyota was putting efforts on enhance the system that his company applied in the 1970s. Finally, He developed a guiding philosophy for manufacturing that minimized waste and improved quality - Just In Time (JIT). This system was made to efficiently and effectively meet fast changing consumer demands. (Manktelow, 1996-2015)

Just In Time (JIT) is a system that
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For example, Toyota is well-known and able to achieve sales target as the JIT approach applied. Customers are more enjoyable to have a new car comparing with a car which is kept in store for a long time.
(Manktelow, 1996-2015)
Disadvantages of JIT Despite of those advantages, everything has its advantages and disadvantages, so as JIT. First and foremost, there are some issues on delivery time. Some of the suppliers may have problems on punctuality, which does not deliver goods to the company exactly on time or even mistakes in the correct amounts to be delivered could be a big trouble. These incidents may cause users having empty shelters or reluctantly put an “Out of Stock” signboard, which may be embarrassing.

Secondly, a natural disaster could be a big issue. As natural disaster such as flood or storm, suppliers may not be able to deliver the stocks are compulsory to stop temporarily. This may also influence the sales amount due to limited stocks held, and lost of loyalty
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