Modern supply chains face a balancing act between efficiency and resilience. Two dominant inventory strategies—Just-In-Time (JIT) and Just-In-Case (JIC)—represent opposite approaches to stock planning:

JIT minimizes inventory, reducing costs and improving flow.
JIC builds buffer stock to absorb disruptions and demand spikes.

Choosing the right approach depends on your company’s priorities, supplier reliability, and tolerance for risk.

What Is Just-In-Time (JIT)?

Just-In-Time is an inventory model designed to minimize inventory holding costs by receiving goods only as they are needed for production or sale.

🔍 Key Features:

Low inventory levels
High supplier coordination
Frequent, smaller deliveries
Strong reliance on accurate forecasting

✅ Benefits:

Lower working capital tied up in inventory
Reduced storage costs
Leaner, more agile operations

⚠️ Risks:

Highly vulnerable to supply chain disruptions
Requires excellent demand planning and real-time visibility
Low margin for error if suppliers are delayed

Toyota pioneered the JIT approach in manufacturing, which later became a cornerstone of lean supply chains.

👉 Lean Enterprise Institute: Just-In-Time Explained

What Is Just-In-Case (JIC)?

Just-In-Case is a more risk-averse strategy, where businesses stockpile inventory to ensure continuity in case of supply interruptions or demand surges.

🔍 Key Features:

Larger buffer inventory
Emphasis on risk mitigation
Suited for volatile markets or unpredictable demand

✅ Benefits:

Improved resilience to disruptions
Greater ability to meet unplanned demand
Reduces stockout risk

⚠️ Drawbacks:

Higher carrying and obsolescence costs
More warehouse space required
Potential for overstocking

This strategy gained popularity during the COVID-19 pandemic, when supply shocks exposed the fragility of global JIT supply chains.
Explore post-pandemic inventory shifts:
👉 Harvard Business Review: Rethinking Just-In-Time

JIT vs. JIC: Side-by-Side Comparison

Feature	Just-In-Time (JIT)	Just-In-Case (JIC)
Inventory Levels	Minimal, lean	Large buffer stock
Risk Tolerance	Low - vulnerable to disruptions	High - focused on resilience
Supplier Coordination	Requires high coordination	Less dependent on tight coordination
Cost Profile	Lower holding and storage costs	Higher carrying and obsolescence costs
Responsiveness to Demand	Agile but dependent on forecast accuracy	Can absorb demand spikes
Suitable For	Stable, predictable supply chains	Volatile, uncertain demand environments

Hybrid Models: The Best of Both Worlds?

Many businesses are now blending JIT and JIC strategies. Examples include:

Holding safety stock for critical SKUs while using JIT for less risky items
Employing digital twins to simulate different inventory models
Using AI to switch modes based on forecast accuracy or supply chain health

Learn how digital twins can optimize hybrid inventory strategies:
👉 McKinsey: Building Resilient Supply Chains

How to Choose the Right Model

Consider these criteria:

SKU segmentation: Different SKUs may call for different strategies.
Market volatility: Higher unpredictability favors buffering.
Supply chain maturity: Advanced forecasting and visibility enable JIT.
Supplier reliability and geographic risks
Cost vs. risk trade-offs aligned with corporate priorities

A modern supply chain strategy isn’t about picking one or the other—but adapting based on these factors.

Conclusion: Strategic Inventory Is Context-Driven

JIT and JIC both serve a purpose. JIT emphasizes lean efficiency, while JIC ensures resilience. The best approach often involves hybrid modeling, powered by data visibility, AI forecasting, and digital simulation.

Next Up: Learn how route optimization and mode selection can reduce costs in
4.4: Transportation Mode Selection Guide for Cost & Speed.