JIT and JIC

• What does JIC stand for in stock control methods?

  Just-in-case
• What is the main principle of the Just-in-case (JIC) stock control method?

  Producing or purchasing stock with excess or buffer stock in place
• What are the advantages of the Just-in-case (JIC) stock control method?

  • Increases customer satisfaction
  • Reduces the chance of running out of stock
  • Benefits from bulk-buy discounts
• What does JIT stand for in stock control methods?

  Just-in-time
• What are the disadvantages of the Just-in-case (JIC) stock control method?

  • Requires more storage space at higher costs
  • Products may lose freshness over time
  • High amounts of cash tied up in stock
  • Increases chances of selling stock at a discount
• What is the main principle of the Just-in-time (JIT) stock control method?

  Not storing any raw materials and having regular deliveries of only what is needed
• What are the disadvantages of the Just-in-time (JIT) stock control method?

  • Difficulties with sudden changes in demand
  • Unable to use bulk-buy discounts
  • Risk of poor customer service if stock needs are misjudged
• What are the advantages of the Just-in-time (JIT) stock control method?

  • Removes buffer stock space
  • Products will be fresher
  • Reduces large amounts of capital tied up
  • Reduces waste and saves money