Compared to traditional inventory models, JIT inventory systems provide a number of advantages. Short production runs allow producers to swiftly switch from one product to the next. This approach also saves money by reducing the requirement for warehouse space. Companies also spend less money on raw materials since they just buy what they need to create the items they’ve ordered.
The drawbacks of JIT inventory systems include the possibility of supply chain interruptions. If a raw-materials supplier experiences a failure and is unable to deliver the items on time, the entire manufacturing line might be halted. The delivery of finished items to end clients may be delayed if an unexpected order for goods is placed.