Q. Disadvantages of just-in-time inventory management?
A JIT inventory management system mayn't run as smoothly in practice as theory may predict since there may be little room for manoeuvre in the event of unforeseen delays. There is little room for mistake for example on delivery times.
The buyer is as well dependent on the supplier for maintaining the quality of delivered materials and components. If delivered quality isn't up to the required standard expensive downtime or a production standstill may arise although the buyer can protect against this eventuality by including guarantees and penalties in to the supplier's contract. If the supplier enhances prices the buyer may find that it is not easy to find an alternative supplier who is able at short notice to meet his needs.