High level view of key JIT inventory model risks: manufacturer scenario
Whilst JIT-aligned manufacturers enjoy a range of benefits from holding minimal-zero inventory on hand, they aren’t entirely immune to some of the (Just-In-Time) inventory model’s inherent risks [discussed in Part 2]
For one; a sudden &/or excessive interruption in the ‘forecasted supply’ of crucial raw materials / parts could pose a significant risk; particularly if the manufacturer’s existing JIT contingency plans aren’t flexible enough to sustain/offset their inventory supply gap for extended periods of time
The following scenario takes a simplified high level view of some of the key JIT inventory risks a traditionally manufacturer (in this case JIT-aligned vehicle manufacturer) may face; including any correlating impacts on production and fulfillment schedules
