Corporate Finance - Speech or Presentation Exampleg too little has its problems and costs like the cost of lost profits that would have been made because of lost sales, the problem of loss of costumer loyalty and patronage, the cost of making more orders from time to time because of limited inventory on hand.Just in time (JIT) practice reduces an inventory level which means lower investments in inventories. It also greatly improves the lead time reliability due to shorter delivery- lead time. There is reduced lead times and set-up time increases scheduling flexibility.Many companies had reported improved quality levels in using JIT. It is also believed that extensive valued analysis reduces cost of purchased materials. There will be lower investments in factory space for inventories and product. There will be also less obsolescence risk in inventories and less paper work and a reduction in scrap and rework.
