Should manufacturing companies use just-in-time inventory
management system under some exposure to disruption risks? It
depends on the supply chain structure and infrastructure. If the
company's supply chain structure and infrastructure are as
depicted in Fig. 2, a usual course of measures discussed in the
literature should be applied. That is, a sensible way of modularizing
product and process, strategic redundancy of resources, and
flexibility should be thought out to alleviate the negative effect of
having redundancy under normal circumstances. With Toyota's collaborative recovery capability based on the coordinating
mechanism depicted in Fig. 1, the contingency capability has been
recognized as sufficient for disruption risk management purposes,
and sticking to just-in-time in ordinary time has been the choice
superior to having just-in-case inventory (Nishiguchi and Beaudet,
1998; Sheffi and Rice, 2005; Fujimoto, 2011)