A potential negative effect of using a just-in-time inventory system is the immediate impact of labor strikes on the transportation system such as railroad.

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Just-in-time inventory relies heavily on the transportation system to deliver goods to the company at the exact moment they are needed. If there is a labor strike or disruption in the transportation system, it can impact the delivery of goods and disrupt the entire production process. This can lead to delays, increased costs, and ultimately affect the company's ability to fulfill customer orders on time.

A Potential Negative Effect of Using a Just-In-Time Inventory System