Question

1. Besides its impact on inventory management, what are the consequences of Just in time (JIT)? Explain the problem with a JIT system for something like Personal Protective Equipment in our current situation?

Please answer both parts.

Answer 1

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JIT basically means Just in time which is a management strategy of inventory system which tends to hold a minimum number of inventory with them in stock and they send the product on an order basis. You need to order first if you want that product as they don't have much inventory with them. But there are some consequences of Just in time besides inventory management is that they fail to adapt the maximum number of orders from the market at a time because they hold a low level of inventory with them and can't accept such orders at a time. Moreover, they are very compassionate about any errors occurring due to there orders as they don't expect to see such errors and they always try there best to satisfy their customers in one go. In case of personal protective equipment, JIT should extend their reach and try to receive more orders at a time because these equipment are used in case of emergency and in that case you can try your level best to increase the level of supply of this equipment which will help the people of the country at the emergency time.