discuss what business risks a company such as toyota takes when it minimizes the inv 615102

The popularity and success of just-in-time inventory methods are often credited to Toyota, the Japanese car manufacturer. Companies following a JIT plan minimize their investment in idle inventory, purchasing inventory only as it is needed for production. Nick Koletic, an economics specialist at UCLA, published an article in Inventory Management Review (10/17/2005) that cited some risks associated with JIT inventory practices. In early 2010, Toyota suffered a quality control problem with accelerator pedals in many of its popular brands, leading to a massive recall; at the same time, Toyota”s popular hybrid car, the Prius, faced problems with its brake system. Discuss what business risks a company, such as Toyota, takes when it minimizes the inventory it keeps on hand.