What is a key disadvantage of Just-In-Time (JIT) inventory management?

A key disadvantage of Just-In-Time (JIT) inventory management is its difficulty in adapting to sudden changes in demand or supply chain disruptions. JIT relies on having minimal inventory on hand, which means that businesses operate with very little buffer stock. This approach allows for reduced storage costs and eliminates excess inventory, leading to leaner operations. However, if there is an unexpected spike in demand or a delay in deliveries from suppliers, a JIT system may struggle to meet customer needs in a timely manner. This inflexibility can result in lost sales and dissatisfied customers, highlighting the critical balance JIT aims to strike between efficiency and responsiveness to market dynamics.