Many JIT implementations in the U.S. actually increased inventory costs because JIT is based on the assumption that warehousing costs are extremely high, as they were in Japan where JIT was initiated by Toyota.

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JIT was developed in Japan where warehousing costs were high, however, in the U.S., warehousing costs were relatively low and this led to an increase in inventory costs for many JIT implementations.

Many JIT Implementations in the U