Differentiate between Just in Time (JIT)and Just in Case (JIC). JUST IN TIME (JIT) vs JUST IN CASE (JIC)

Just-in-Time:- It is a reactive strategy in inventory management whose main focus is efficiency and is done by reducing waste and costs by only bringing in inventory when it is needed for production. JIT is more commonly used where demand is stable and supply chains are in perfect shape with no disruptions.

Just-in-Case It is a proactive strategy in inventory management whose main focus is responsiveness and customer satisfaction with aims to meet potential demand quickly and avoiding the risks of shortages by stocking up on inventory in advance. Basically, JIC prioritizes risk management over cost reduction by keeping extra stock in hand. It is more commonly used in industries with unpredictable demand and supply chain disruptions.

Key differences between JIT and JIC include:

• Inventory Management: In JIT, order is placed and inventory is received, only as it's needed for production, while JIC stocks up inventories ahead of time. • Types of Suppliers : JIT requires reliable and much developed suppliers, while in JIC, have to rely on less reliable or local suppliers.
• Strategy to mitigate supply chain disruptions: JIC can rely on excess inventory to mitigate supply chain disruptions, while JIT needs supplier reliability and full collaboration to servev their customers. • Pull and Push Strategy:- JIT in inventory management is used for a Pull strategy of Supply Chain Management where goods are produced when an order is received, whereas JIC is used for Push strategy of Supply Chain Management and goods are stocked or produced before order received based on Demand Forecasting. • Types of Products:- JIT model is used where the products are specific, valuable or not commonly used or consumed. On the other hand JIC is used for necessary and commonly used goods (consumer goods), those are urgently on time needed.

Hybrid Models:-

Both strategies have advantages and disadvantages, particularly after pandemics like COVID-19, there is strategic pivot towards hybrid models that blend elements of both JIT and JIC strategies to build resilience against future crises like pandemics or natural disasters. This way, companies can strike a balance between cost reduction goals and risk mitigation objectives while keeping their operations running smoothly amidst unexpected challenges.

So, to face these adversities, businesses have reevaluated the inventory management strategies and adapt them for a more uncertain world.