Logistics: Just-in-Time or Just-in-Case Inventory?
Mark Lemuel M
7 replies
Just-in-Time vs. Just-in-Case Inventory: This compares maintaining minimal inventory and ordering supplies as needed (just-in-time) versus keeping a buffer stock to mitigate supply chain disruptions (just-in-case).
which will win in the long run?
Replies
Jasmine Clarke@jasminec
Just-in-Case means having extra inventory to guard against surprises, which can be useful but may lead to higher storage costs.
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It's like ordering a pizza right before you need it; there are no extra ingredients hanging around . Just-in-Case is similar to storing up on frozen pizzas in case you unexpectedly become hungry.
JIT focuses on having just what you need when you need it, so you avoid excess stock and save on storage costs.
T aims to minimize the amount of stock you hold, which can be great for cash flow. Just-in-Case involves keeping a buffer stock, which might be tie up capital but ensures you're covered if something goes wrong
JIT relies on a well-coordinated supply chain and is suited for environments where demand is steady. Just-in-Case is about playing it safe and having extra inventory on hand to avoid stockouts during unexpected changes.
It's is similar to a precise, well-timed clock,everything happens on time. Just-in-Case is similar to having a backup generator in case the power goes out, which provides piece of mind even if it is rarely used
