The correct option for the disadvantages of using a just-in-time inventory strategy is:
- The strategy doesn't work when customer demand is uncertain.
Explanation:
1. Just-in-time inventory strategy relies on having precise and predictable customer demand to function effectively.
2. Uncertain customer demand can lead to challenges in meeting orders on time and may result in stockouts or delays.
3. Without a clear understanding of demand patterns, it becomes difficult to maintain optimal inventory levels and production schedules.
4. This uncertainty can impact the efficiency and cost-effectiveness of the just-in-time system, as it may lead to excess inventory or shortages, affecting overall operations.