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Impact of JIT on business

JIT has an impact on businesses which are focused on production, discuss fully the positives and negatives associated with this methodology.

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Just in Time (JIT) can be defined as a fabrication and stock control method in which resources are bought and goods are manufactured only as required to satisfy authentic purchaser demand.

• Positive aspects:

1. Finances that were used in stocks previously can be employed somewhere else.
2. Locations earlier utilized to stock up stock can be brought to play for some other more fruitful uses.
3. Decrease in imperfection rates, leading to lower dissipate and higher purchaser contentment.

• Negative aspects:

1. Executing systematic JIT processes can embrace a key revamping of the business systems–and might be complicated and costly to commence.

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