True: the use of just-in-time, stockless buying or systems contracting favors the use of multiple sourcing.
Using a just-in-time (JIT) inventory system, suppliers can place orders for raw materials that are directly in line with production schedules. By only ordering the things they actually need for the production process, businesses can cut down on inventory expenses while increasing efficiency and reducing waste. Producing using this technology necessitates precise demand forecasting. The just-in-time (JIT) inventory system reduces stock and boosts productivity. Because manufacturers receive supplies and parts as needed for manufacturing and do not incur storage costs, JIT production techniques reduce inventory costs.
Furthermore, in the event that an order is canceled or not filled, manufacturers are not left holding extra inventory.
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