JIT vs JIC: Strategic Inventory Management
Cambridge International AS & A Level Business (9609) - Topic 4.2.4
The Strategic Context
Just in Time (JIT) vs Just in Case (JIC) is not a simple choice between "modern" and "old-fashioned." It's a fundamental strategic decision about how a business manages the trade-off between:
- • Minimal inventory holding costs
- • Improved cash flow
- • Reduced waste/obsolescence
- • High supplier dependency
- • Buffer against disruptions
- • Operational independence
- • Can meet demand spikes
- • Higher capital tied up in stock
Quiz Structure (39 Marks Total)
AO1 Knowledge: Precise definitions and key concepts
AO2/AO3: Context-specific scenarios with calculations
AO4: Essay questions using AJIM framework
Lead Examiner's Warning
The most common error in JIT/JIC questions is treating them as theoretical opposites rather than strategic choices dependent on context. Your evaluation MUST consider: industry type, product characteristics, supply chain geography, competitive position, and financial capacity. There is no "always right" answer - only well-justified strategic recommendations.
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