Supply Chains and the Disadvantages of Just In Time Production

The Japanese are always given credit for developing the types of efficient operations management, e.g. Just in Time or Kaizen. But what happens when something goes wrong, as has happened with the recent tsunami disaster? Check it out:

http://www.economist.com/node/18486015

Probably the most interesting idea: companies might have to give up efficiency for robustness, i.e. hold more stock as an insurance for those times when supply chains are not functioning.

Also, consider this to PPQCRF- the importance of reliability in the supply chain.