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JIT and supply chain disruptions following a major disaster: A case study from the auto industry
Author(s) -
Lim Amelia Hsern Yong,
Tan Cheng Ling
Publication year - 2018
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.21887
Subject(s) - supply chain , domino effect , business , supply chain risk management , industrial organization , production (economics) , supply chain management , risk analysis (engineering) , operations management , service management , microeconomics , marketing , economics , physics , nuclear physics
The just‐in‐time approach is widely regarded as an efficient and cost‐effective way to manage inventory. It may have quite the opposite effect, however, if there is an unforeseen disruption in the supply chain. A delay in one part of the supply chain can have a domino effect, affecting production and delivery commitments further down the chain, leading to significant losses for the companies involved. An analysis of a Malaysian manufacturer's response after an earthquake disrupted its supply chain shows other companies what they can do to minimize losses and curb the impact of both major and minor disruptions.