Question

Why are JIT (Just-In-Time) systems not realistic in Cuba? (Give multiple reasons)

Answer 1

The advantages of the just-in-time (JIT) production strategy are all around recorded, yet it can likewise have some genuine drawbacks. The main issue with this production procedure is confirm in its name. "Just in time" implies that the achievement of this business strategy depends to a great extent on exact coordination amongst businesses and their providers to guarantee incite conveyance. Since there is no inventory cradle, business can endure enormously if any one component of production is postponed.

The JIT production strategy implies that businesses don't deliver things available to be purchased until the point when they have been requested by clients, meaning inventory is low or nonexistent. While low inventory can be valuable to an organization's main concern in various ways, running a business thusly requires a lot of coordination. From obtaining the crude materials required for manufacturing to ensuring timely conveyance, each part of JIT production must be synchronized. This frequently implies businesses must invest in the usage of information innovation to empower programmed warning to providers when orders are gotten.

Under standard inventory-based production models, businesses submit vast requests for materials from wholesalers, and numerous things can be created from one shipment. As production exhausts the main shipment of crude materials, another request is sent, creating an advantageous time cushion. On-request production implies organizations must find providers that are willing to satisfy little, visit arranges without prior warning, frequently implies using neighborhood providers to decrease shipping time and costs. With no back load of inventory or materials, any production network issue can prompt conveyance delays and furious clients. A sudden increase in the cost of crude products because of issues with material sourcing, deficiencies, cataclysmic event or political change (called supply stun) can likewise represent a genuine risk to the capacity of an organization to benefit its clients viably.

Since JIT production is construct totally in light of existing requests, it isn't the most effective framework for dealing with the unforeseen. An organization that uses this strategy might be poorly prepared to deal with a sudden surge popular for an item. The absence of go down inventory implies clients must sit tight for the organization to get supplies and make the item. This can mean expanded deferrals, disappointed clients and potential relinquish of part of the greater part of a request if any inventory network issues emerge.

not able to please substantial requests in a timely way can cost a business cash, however there are other shrouded costs inherent in the JIT strategy that are just as imperative, however less sensational. Producing merchandise available to be purchased in littler amounts implies spending less per shipment of crude materials, yet it can really wind up costing an organization more. Businesses that have high production levels advantage from the economy of scale: as production increases, the normal cost of producing every thing really diminishes. This is halfway on the grounds that substantial discount buys frequently accompany liberal amount based rebates. Businesses that use the JIT production strategy may pay more per thing since they should make littler, more successive requests that don't meet all requirements at these sorts of cost breaks. The extra shipping and conveyance charges that go with more incessant ordering can likewise importantly affect the primary concern, and also on the earth.