Reply in 100 or more words to the statement below about “just in time inventory procedures”.
I found just in time (JIT) inventory procedures to be interesting because it applies to E-commerce. I have been doing research about Amazon selling recently and one thing I learned from a lot of sellers is that they sometimes have issues with either having too much supply or too little. Just in time refers to aquiring materials and manufacturing materials based on customer demand. Most of the problems I’ve found through e-commerce research is that sellers face a lot of warehouse fees for storing product over a long period of time because the demand for their product is lower than expected. Another problem is that the demand is too high and their products run out quickly. Once they run out it takes awhile to get shipments to Amazon warehouses at times. If sellers implement JIT they can avoid those storage fees that do not add value to their product. On the other side their product manufacturers actually end up losing out on money as well. If a seller can not sell off their product they may end up going out of business due to the excess fees they were not expecting. The seller may then decide selling on amazon is not worth it and not pursue the business model anymore. Its actually something that happens often within in the amazon seller community.
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