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Just-in-time (JIT) purchasing offers several advantages, including reduced inventory holding costs, improved cash flow, and increased efficiency through streamlined operations. However, it also presents disadvantages such as vulnerability to supply chain disruptions, potential stockouts, and the need for precise demand forecasting. Additionally, JIT can lead to increased pressure on suppliers to deliver goods promptly, which may strain relationships if issues arise. Overall, while JIT can enhance operational efficiency, it requires careful management and reliable supplier partnerships.
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