Just In Case - JIC

Just In Case - JIC

An inventory strategy companies use whereby large inventories are kept on hand.

Notes:

This inventory strategy is much different than the newer Just in Time (JIT) strategy where companies try to minimize inventory costs by producing the goods after the orders have come in.

The Just in Case strategy is older and used by companies with trouble forecasting demand. When there is an unexpected spike in demand they have enough production materials on hand to meet the demand. The downside of this strategy is that they have higher storage costs.

See also: Inventory, Just In Time, Mothballing, Supply Chain Management, Supply Chain