Business – 9.3 Operations strategy – Lean production | e-Consult
9.3 Operations strategy – Lean production (1 questions)
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Key limitations of JIT include:
- Vulnerability to supply chain disruptions: With minimal inventory, any delay from suppliers can halt production.
- High set‑up costs and change‑over times: Frequent small‑batch production requires rapid set‑ups, which can be costly if equipment is not flexible.
- Limited ability to meet demand spikes: Without safety stock, sudden increases in customer demand may lead to stock‑outs and lost sales.