Advantages and disadvantages of Just in time

  • Created by: Emmy sale
  • Created on: 06-03-15 10:34
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  • Just in time
    • Disadvantages
      • Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed
      • There is little room for mistakes as minimum stock is kept for re-working faulty stock
      • There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders- however, JIT is a very responsive method production
    • Advantages
      • as stock is only obtained when it is needed, less working capital is tied up in stock
      • Lower stock holding means a reduction in storage space which saves rent and insurance costs
      • There is less likelihood of stock perishing, becoming obselete or out of date
      • Avoids the build up of unsold finished product that can occur with sudden changes in demand
      • Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time


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