Just in Time (JIT) is an inventory strategy that aims to keep stock levels as low as possible by receiving goods only when they are needed in the production process. Think of it like ordering a pizza only when you’re ready to eat it – no leftovers, no waste.
Just in Case (JIC) is the opposite approach. Companies keep larger safety stocks to protect against uncertainty such as supply delays or sudden demand spikes. It’s like keeping a spare pizza in the fridge just in case you’re hungry later.
| Feature | JIT | JIC |
|---|---|---|
| Inventory Level | Very low | High |
| Risk of Stockout | High | Low |
| Storage Cost | Low | High |
| Supplier Relationship | Close & frequent | Less frequent, larger orders |
JIT Example: A smartphone manufacturer receives components from suppliers just before assembly. If a supplier delays, the production line stops, but the company saves on storage costs.
JIC Example: A grocery store keeps a large stock of canned goods to survive a sudden supply disruption. The extra inventory ensures customers can still buy their favourite items.