Short Case Scenario 7-1

Essay

Short Case Scenario 7-1
Alan Jackson is the founder and owner of Sky Scooters, a small manufacturing company located in San Jose, California. For years, Alan toyed with ideas for a motorized scooter. Seeing the success of the Segway scooter, Alan decided to act. Although his design, the Sky Cruiser, is not as well known as the Segway, it incorporates many of the same benefits. Adding to its appeal, the Sky Cruiser sells for almost $1,000 less than the Segway. Virtually all Sky Cruisers are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, Alan has hired his sister, Colette. Colette, a recent business school graduate, has suggested that Alan consider a just-in-time production system. Alan wonders if this would be in his best interest.
-Are there any potential negative consequences of switching to a just-in-time system?