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True or false: Just In Time (JIT) method considered a risky technique?

It is considered a risky technique because you only purchase inventory a few days before it is needed for distribution or sale so that the items arrive just in time for use.

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Question added by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive
Date Posted: 2015/03/09
Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

My answer will be False <<<<<<<<<<<<<<<<<<<

Nikhil Jacob
by Nikhil Jacob , Sr. Supervisor - Inventory Management , Alghanim Automotive - Ford

After spending almost three years in the automobile industry and working on different project for major OEM's, one thing I have learned is that there is no hard and fast rules in supply chain. One cannot generalize the statement as "Just in time is risky" or "Just in time is not risky". It all depends on

1. Industry

2.The type of product in context

3. The transit time

4. Supplier performance

5.Class of item

6.Information systems in place

And many more factors when we go in detail, these are the few major ones.

For example I have seen the Hyundai, Chennai plant has developed a vendor park around its plant and works on an excellent Just in Time model, majorly  for there trim chassis parts and sheet metal parts. 

Hany Helmy Haleem
by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

you missed the point,

the answer is true It is considered a risky technique because you only purchase inventory a few days before it is needed for distribution or sale so that the items arrive just in time for use.

Best Regards

Ziaul Karim Mazumder
by Ziaul Karim Mazumder , Executive Director Merchandising , Heartson Fashion

I can do it.

But, You give me the authority to expense higher if needed. Last decayed I have had done it for USA Exclusive Apparel Buyer - www.Dillard's.com  

Their P.O. terms & conditions-

One week delay of ship date TEN% discount on FOB value, Two weeks delay TWENTY% discount, Three weeks delay THIRTY% discount, Four weeks delay FOURTY% discount or GOODS cancelled.

 

So, I must calculated up charge in advance for the piece goods which have had needed to collect from abroad.

Abdou warshan
by Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية

I agree with Mr Hany Haleem

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