Just-in-time, a method of stock control where the business holds no stock and is highly reliant on fast deliveries of raw materials and components to arrive exactly when they are needed
JIT
1. Making what is needed
2. When it's needed
3. The amount that is needed
Advantages of JIT
Cheaper to operate
Less likely stock will perish
Reduced warehouse costs
Able to sell products much faster
Disadvantages of JIT
Very complex and costly
No spare products available to meet unexpected orders or a sudden increase in demand
No room for error, must have highly trained staff
JIC
Just-in-case, when a business has stock and stockpiles
Advantages of JIC
Meets customer expectations
Less deliveries
Has buffer stock to avoid losing potential customers when receiving unexpected orders/demand
