This ppt discusses the differences between just in time and just in case inventory management techniques. It explains core differences between them along with there advantages and disadvantages. It explains which model is best in what case or what companies should do when they need to adopt an inventory management strategy.

1. Just In Case Vs Just In Time
OR HYBRID MODEL
DIFFERENCES
APPLICATIONS
ADVANTAGES
DISADVANTAGES

2. Just-in-time (JIT) and just-in-case (JIC) are;
❖ Opposite ends of the inventory management philosophy.
❖ One aims for lean operations, the other makes stockpiling a priority.
Just In Case Vs Just In Time
refers to raw materials and supplies used in production, unfinished items in various stages
of the manufacturing process and final products.
INVENTORY
Just-in-Case
is the traditional method of holding a reserve of both raw materials and
finished products to be able to respond to a sudden increase in demand.
Just-in-Time
keeps as little stock as possible and orders inventory only when customers
place orders. (Right thing at right time, at right place in right quantity)

3. Just In Case Vs Just In Time
❑ Production Approximation
❑ Large Lots
❑ High Inventories
❑ Anticipated Usages
❑ Potential for Waste
❑ Management by Firefighting
❑ Production Precision
❑ Actual Consumption
❑ Small Lots
❑ Low Inventories
❑ Waste Reduction
❑ Management by Sight
Traditional Method Modern Standard

4. Just In Case Vs Just In Time
Traditional Method Modern Standard
PUSH SYSTEM PULL SYSTEM
Production based on customer order
Production based on anticipated demand

5. Advantages Vs Disadvantages
Reduced holding costs
Lowered waste
Efficient use of resources
Protected investments
Supplier stability needed
Inability to meet unexpected demand
Pricing risks
More planning required
Just In Time
Just In Case
Advantages Vs Disadvantages
Reduced consequences of supplier delays
Ease navigating demand fluctuations
Savings
Increased competitiveness
Requires more working capital
Higher warehousing costs
Wasteful if demand declines
Increased opportunity costs

6. Just In Case OR Just In Time
Traditional Method Modern Standard
✔ You have strong relationships with suppliers that can reliably deliver orders.
✔ Your supply chain already functions on short turnaround times.
✔ You have dependable organizational systems and can make reliable sales forecasts.
✔ You have flexible plans in place for handling supply chain disruptions.
USE JIT WHEN:
USE JIC WHEN:
✔ Your suppliers are unreliable and don’t deliver orders consistently.
✔ Your customer demand experiences frequent fluctuations and is difficult to predict.
✔ Your materials or raw components are subject to sudden price surges or frequently go
out of stock.

7. Just In Case Vs Just In Time
Traditional Method Modern Standard
A "push" system where inventory purchases are not
based on actual current demand.
Focuses on maximizing flexibility with less concern for
capital application.
Excess inventory is kept on hand to avoid running out
due to supplier delays or demand spikes.
Companies generally make larger, more expensive
inventory orders.
Valuable when demand is unpredictable or suppliers
are unreliable.
Demand forecasting is less critical as long as there is
enough inventory to meet the highest demand.
A "pull" system where inventory is essentially purchased
to order.
Focuses on minimizing inventory and using capital
efficiently.
Inventory is purchased only to meet immediate
production or sales needs.
Less working capital is required because inventory
purchases occur in smaller batches.
Works best when demand is stable and suppliers are
highly dependable.
Requires accurate demand forecasts to avoid over- or
under-buying inventory.

8. CHOOSING A HYBRID MODEL
There are more cons than pros from hewing strictly to either a JIC or JIT inventory management strategy.
✔ A standard method of employing a hybrid push-pull inventory system is to have some stages of the
supply chain operate as pull systems while others operate in a push model.
✔ This strategy requires a more accurate demand forecast than a JIC system but doesn't aim to keep
standing inventory at zero, as in JIT systems.
ABC analysis
VED analysis
HML analysis
Performing Inventory Analysis
Economic Order Quantity Model
Production Order Quantity Model

9. THANKS
You can see the you-tube video tutorial explaining all these concepts in Hindi & Urdu in 2 parts
Below are the links
https://youtu.be/rY-0s6sedIc
https://youtu.be/lP7ThBbflvs
Part 1
Part 2