Question

How has covid-19 impacted Amazon's JIT and aggregate planning?

Answer 1

Answer:

The COVID-19 pandemic has impacted the global supply chain and not only the brick and mortar retailers are facing its heat rather e-commerce giants are also facing huge challenges in keeping up with the supply chain requirement. Restrictions imposed by the governments and the lockdown scenario led to the disruption in the supply chain and deliveries of the goods were impacted initially. Gradually the supply side from the retailers who were onboard also got impacted due to closure of manufacturing facilities for a prolonged duration. Then the new problem of issues related to the prices of the goods which are in huge demand during the pandemic started.

Due to imposition of lockdown and restriction on the movement of goods is creating a very difficult condition for the company to follow their JIT inventory planning strategy. Most of the time company is not able to meet the delivery timeline, product prices are increasing and more and more customers are feeling dissatisfied. aggregate planning has also become difficult due to forecast errors. Nobody had factored the impact of the highly unpredictable impact being imposed due to the pandemic.