JIT programs often result in suppliers bearing bulk of the inventory costs when the buyer and supplier don't share information and coordinate plans.

Question

Quizplus · Accepted Answer

This is because in a JIT system, the goal is to have minimal inventory levels and only order what is needed when it is needed. This often requires the supplier to hold inventory until it is needed by the buyer, leading to increased inventory holding costs for the supplier. Coordination and shared information between the buyer and supplier can help mitigate these costs.

JIT Programs Often Result in Suppliers Bearing Bulk of the Inventory