In Just in Time it is also required that beneficial and interactive relationship exists between the suppliers and the manufacturer to facilitate the operation of Just in Time operations.
The costs pertaining to the warehouse are reduced as there is no stock being kept in the storage. This eliminated the maintenance of inventory costs and the inventory handling costs pertaining to the warehouse. This also reduces the chance of inventory corruption, theft and inventory perishing in the warehouse as well. The costs for the transportation of the inventory however increase as the inventory has to be made available precisely with the operations runs in the schedule.
As identified earlier the Just in Time involves an optimal Economic Order Quantity to be devised which fits the supplement required for one production run f operations pertaining to manufacturing of goods. Therefore due to the nature of the Just in Time no buffer stock or any other kind of inventory is stored at the point of operations. The probability of stock outs are avoided by precise scheduling of the operations with the supply of the raw material required for production and manufacturing related operations.