This keeps getting rediscovered in new domains. JIT was the savior of manufacturing, until people learned that a single traffic jam that delayed a single delivery could create costs far in excess of the inventory savings. Optimizations are critical, everywhere. And measuring optimizations is important because it is is easier and cheaper and earlier than measuring end results. Measuring days of inventory, or dollars i…
I highly recommend playing the beer game with different inventory sizes, and looking at the results. Inventory management is not a simple task, and can not be generalized like this. JIT was adopted because it reduced the number of supply chain disasters, not despite increasing it like you claim. But, of course, that reduction wasn't homogeneous and not every single place saw a gain.
My point was that any optimization process can go wrong when people start focusing on maximizing the optimization rather than the ultimate goal. That is how JIT goes wrong. It is also how overfitting appears in neural net training, how security flaws appear in branch prediction, etc.
I'm an MBA. I love JIT. But it's undeniable that JIT has led to disasters. I'm not blaming the approach, I'm blaming specific implementations.