Disadvantages of just-in-time inventory management, Financial Management

Assignment Help:

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.


Related Discussions:- Disadvantages of just-in-time inventory management

Operating cycles, use the operating cycle to formulate a broiler business

use the operating cycle to formulate a broiler business

#WALTOR''S MODEL., CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME...

CAPITALISATION RATE=0.01 EARNINGS PER SHARE(E)=10 ASSUME RATE OF RETURNS ON INVESTMENTS (R):15

Merits of net present value method, Q. Merits of net present value method? ...

Q. Merits of net present value method? Merits of NPV method:- (i) Time value of funds is taken into consideration: - For the reason that this method takes into account the t

OPERATING CYCLE, discuss the applicability of operation cycle in avegetab...

discuss the applicability of operation cycle in avegetable growing business

Principles of good regulation, Principles of Good Regulation While perf...

Principles of Good Regulation While performing its functions, the FSA needs to take into account certain matters which are termed the ‘principles of good regulation'. The matte

What are three major sections of the statement of cash flow, What are the t...

What are the three major sections of the statement of cash flows? Cash flows from financing activities Cash flows from investing activities Cash flows from Operations

Evaluate the profitability and sales, a) Stockpiles refers to the accumulat...

a) Stockpiles refers to the accumulated (or excess level of) supply Ford motor vehicles, i.e. too much production given the level of demand. The purpose is to prevent possible shor

Discuss the pros and cons of financing in unhedged, You have the following ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Factors affecting choice of a maximum cash balance amount, Explain the fact...

Explain the factors affecting the choice of a maximum cash balance amount. The maximum cash balance amount is regulated by available investment opportunities, the expected payb

What circumstances would market to book value ratios, Under what circumstan...

Under what circumstances would market to book value ratios be misleading?  Explain. The Market to Book ratio is helpful, however it is only a irregular approximation of how li

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd