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
Musa Dejesus@musa_dejesus
JIT focuses on having just what you need when you need it, so you avoid excess stock and save on 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.
Just-in-Case means having extra inventory to guard against surprises, which can be useful but may lead to higher 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