What type of challenges does Just-in-time (JIT) manufacturing face?

Just-in-time (JIT) manufacturing is a strategy that aims to reduce waste by receiving goods only as they are needed in the production process, which minimizes inventory costs and storage requirements. However, this approach makes supply chains particularly vulnerable to disruptions.

When a natural disaster occurs, it can significantly hinder the supply chain by delaying shipments and making it challenging to procure the necessary materials. Since JIT relies on timely deliveries and low inventory levels, any disruption can result in production halts, increased costs, and inability to meet customer demands.

While minimal operational costs, increased labor costs, and excess inventory management might pose challenges in different manufacturing environments, they are not specific challenges that are characteristic of JIT manufacturing. JIT is specifically designed to mitigate excess inventory issues by maintaining low stock levels and is not inherently associated with increased labor costs. Thus, supply disruptions during unforeseen events like natural disasters represent a critical challenge for JIT manufacturers.