A disruption in the supply chain that causes input shortages can cause inventory problems for firms that rely on a just-in-time (JIT) inventory system.

Question

Quizplus · Accepted Answer

A disruption in the supply chain can cause delays or interruptions in the delivery of necessary inputs for production, which can lead to inventory shortages for firms that rely on a JIT inventory system where inventory levels are kept low and production is scheduled based on demand.

A Disruption in the Supply Chain That Causes Input Shortages