![]() (3) lack of safety stock: just In time Inventory has no room, or safety net for excess Inventory to handle unexpected demand, or supply disruption this practice Is risky especially for Industries with high demand volatility, or suppliers prone to delay. A lapse, or delay In the production, or delivery process can cause disruption In the work flow resulting In stock out, loss of sales, loss of customer, and reduced profit. (2) Limited room for error: Just In time Inventory leaves little room for error. Any disruption such as delays In suppliers delivery, unforeseen circumstances can lead to stock out, and customer dissatisfaction. DISADVANTAGES OF THE JUST IN TIME INVENTORY STRATEGY (1) Supply chain reliability: Just In time Inventory relies heavily on a well functioning, and dependable supply chain. It enables businesses to respond swiftly to fluctuation In customer demand, without the burden of excess Inventory. Just In time Inventory also streamline the production process, reduces lead time, and minimized waste resulting In Improved operational efficiency, Increased productivity, and better customer satisfaction, (3) Promote Flexibility: Just In time Inventory management allows businesses to quickly adapt to changes In customer demand, and market trend. (2) Enhanced efficiency: Just In time Inventory strategy promotes the receiving of Inventory, and stock only when needed. This leads to lower storage cost, Increased cash flow, reduced risk of obsolescence, and expiration of goods. ADVANTAGES OF THE JUST IN TIME INVENTORY STRATEGY (1) Cost efficiency: Just In time Inventory strategy reduces Inventory carrying cost by minimizing the amount of stock/Inventory held. Let's now have a brief look Into the advantages, and disadvantages of Implementing, and using the Just In time Inventory strategy. ![]() One popular approach Is the just In time Inventory strategy which aims to minimized Inventory holding cost, and Improve operational efficiency however like any other strategy It has Its own upside, and downsize and could spell disaster for your business, and Its customers If not manage properly. ![]() In today fast paced business environment companies are constantly seeking ways to optimize their Inventory management.
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