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Explain the disadvantages of just in time stock control.

Explain the disadvantages of just in time stock control.

Answers

Lydia
? It is harder to cope with unexpected changes in demand which means customers may go elsewhere
? If customers are forced to go elsewhere for a product they may be lost completely to a competitor
? Could cause delays in production or possibly halt production as there are no raw materials to use in production
o Which can mean paying for workers who aren’t producing any goods
? Continually ordering stock can mean increased administration costs
? Increased transport costs due to the number of deliveries taking place
o Can also increase carbon footprint
? Increased unit costs due to making small orders as opposed to buying in bulk
? Relies on good communication/relationships with suppliers to work effectively
lydiajane74 answered the question on June 1, 2018 at 15:07

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