Disadvantages associated with just in time (J I T) inventory management system

  1. Implementing through JIT procedures can involve a major overhaul of your business systems – it may be difficult and explain to introduce
  2. JIT manufacturing opens businesses to a number of risks notably those associated with your supply chain with no stocks to fall back on, a minor disruption in supplies to your business from just one supplier could force production to cease at very short notice
  • JIT production can be very sensitive to any kind of error. Since bare minimum inventory levels are maintained, there is no room for any kind of error.
  1. JIT production will not be able to adopt well to sudden increase in volume of demand from market since the inventory levels are maintained at much lower level
  2. JIT focused on lean inventory : hence there is not much buffer in show levels. For any reason, if there is any kind of failure that happens in the supply chain that can lead to sudden down time in production leading to huge losses for the organization.
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