(JIT) Just-in-time Inventory Management systems began to appear in the United States in the Late 1970’s manufacturing space. The theory was sound: Improve the efficiency and profitability of production systems by maintaining minimal levels of inventory across the board.

Depending on the industry, this management system worked well between late-stage manufacturers and customers. Problems arose with this theory, however, once down-stream supply chain producers attempted to operate by the same JIT principals.

Discuss why this may happen, and what the unintended consequences may be. Give specific examples if you can.