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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.
My answer will be False <<<<<<<<<<<<<<<<<<<
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.
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
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.
I agree with Mr Hany Haleem
