5.6.2 (HL)—JIT and JIC

Just-in-time keeps inventory low by receiving inputs near use; just-in-case holds buffers against uncertainty. The choice balances carrying cost with disruption risk.

JIT needs reliable suppliers and predictable flow; JIC protects continuity but ties up cash and may hide waste. Hybrid buffers can protect critical items.

Identify uncertainty and the cost of stockout versus holding stock before choosing the policy.

A hospital keeps emergency masks as JIC but orders routine stationery JIT.

JIT is not “no inventory,” and JIC is not automatically inefficient.