Just-in-time inventory reduces inventory holding costs q,by reducing customer customizationbut…

➤ Why does JIT sometimes reduce customer satisfaction?
JIT can reduce customer satisfaction when low inventory leads to stockouts, longer wait times, or limited product variety. Customers expect quick delivery and choice. If suppliers fail or demand spikes, firms cannot meet orders. Maintaining reliable suppliers, transparent lead times, order tracking, and selective safety stock helps preserve satisfaction while keeping JIT benefits.