The supply chain management also varies significantly in the industry according to the nature of the business and their business philosophies. The Japanese companies do not keep inventories of their finished goods. They tend to produce only as much as would be sold or as much as are demanded by the dealers and the buyers in the market. This makes way for efficient operations.
The American and European companies also strive to follow the just in time method but due to improper application of the system, they are forced to keep inventories of the finished goods at their warehouses and shipping stations as per the forecast which provides them how much finished goods would be required in the market ion the following periods