just in time (JIT)

• What is the traditional approach to inventory control called?

  Just in case (JIC)
• What is the main purpose of holding excess inventory in JIC?

  To handle supplier issues or demand spikes
• What is a disadvantage of the JIC approach?

  It incurs costs for storage and maintenance
• What does JIT stand for in inventory control?

  Just in time
• How does JIT production differ from traditional inventory methods?

  It produces items only when there is demand
• What is the ideal scenario for JIT production regarding inventory?

  No inventories at all
• What are the advantages of just-in-time production?

  • Provides tremendous flexibility
  • Reduces costs by eliminating warehousing
  • Minimizes wastage of resources
• What happens if demand is not estimated correctly in JIT production?

  Production may not meet actual sales needs
• What is a potential problem with JIT regarding suppliers?

  It relies on timely delivery from suppliers
• What can happen if suppliers fail to deliver on time in a JIT system?

  Production cannot continue due to no buffer
• How did the 2011 earthquake in Japan affect businesses using JIT?

  It disrupted supply chains and production
• What was a similar effect of the COVID-19 pandemic on JIT businesses?

  Closure of suppliers disrupted production
• What vulnerability does the JIT system create regarding employees?

  Production halts can be very costly
• How can switching to JIT lead to increased costs?

  Due to more frequent reordering and admin costs