Advantages and disadvantages of Just In Time

Strengths Holding less stock in storage reduces storage costs — improves efficiency and effectiveness. Less of the business’s finances are tied up in stock as materials are only obtained as needed. Limitations Supplier deliveries must be reliable — a limited amount of materials will be held in inventory so a supplier failing to deliver can hold up production. Materials must be received at the appropriate time failure to do so can bring a production line to a halt.