What Are the Challenges of Implementing JIT Inventory?
While JIT offers numerous benefits, it also comes with its own set of challenges:
Supplier Reliability: Dependence on suppliers means that any disruptions in their operations can directly impact your production schedule. Logistics: Coordinating timely deliveries requires a robust logistics network, which can be complex and costly to maintain. Demand Forecasting: Accurate demand forecasting is crucial to avoid stockouts or overproduction, both of which can be detrimental to the business. Initial Setup Costs: Implementing a JIT system may require investing in technology and training, which can be a barrier for some startups.