JIT and JIC

• Just In Case

  that aims to keep extra stock in hand to avoid any risks. It means a business orders more raw materials than required and produces more products than it expects to sell.
• Adv of JIC

  Reduces risk

  Assurance of supply

  Production stability

  Flexibility

  Economies of scale

  Reduced transport costs
• Disadv of JIC

  Higher inventory holding costs

  Capital tie-up

  Reduced cash flow

  Storage space requirements

  Less focus on lean principles
• What is JIT

  system aimed at reducing waste and improving efficiency by receiving goods only as they are needed in the production process, thereby minimising inventory holding costs.
• Adv of JIT

  Reduced inventory costs

  Improved cash flow

  Waste reduction

  Increased efficiency

  Quality improvement

  Space saving
• Disadv of JIT

  Supply chain vulnerability

  Increased risk of stockouts

  Production interruptions

  Dependence on suppliers

  Higher transportation costs

  Less flexibility