Purpose of JIT and JIC (Just in Case) Inventory Management
What is the purpose of Just in Case (JIC) inventory management?
Just in Case (JIC) inventory management involves holding extra inventory as a precautionary measure to mitigate the risk of stockouts. It helps ensure continuity in production and meet unexpected increases in demand.
How does JIC (Just-in-Case) approach differ from JIT approach in inventory management?
The JIC (Just-in-Case) approach involves holding higher levels of inventory as a precautionary measure to ensure product availability and minimize the risk of stockouts. It focuses on maintaining safety stock to meet unexpected fluctuations in demand or supply disruptions. In contrast, the JIT (Just-in-Time) approach aims to minimize inventory levels and relies on precise demand forecasting, efficient coordination with suppliers, and streamlined production processes to ensure timely inventory replenishment.