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JIT Vs JIC

JIT Vs JIC. Just in time Vs Just in case. Objectives. To be able to compare JIT with JIC. JIC???. Stock is held just in case we need it (We have a buffer stock) 10 minutes to research JIC: What is it? Advantages? Disadvantages?. Costs/problems of JIC. Advantages of JIC.

cameron-boyer
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JIT Vs JIC

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  1. JIT Vs JIC Just in time Vs Just in case

  2. Objectives • To be able to compare JIT with JIC

  3. JIC??? • Stock is held just in case we need it (We have a buffer stock) 10 minutes to research JIC: • What is it? • Advantages? • Disadvantages?

  4. Costs/problems of JIC

  5. Advantages of JIC • Can meet sudden changes in D • Can speed up production if necessary • Economies of Scale • Little downtime Disadvantages of JIC • Really these are the costs of stockholding

  6. Just in time • Exactly what it says on the tin! • 10 minutes to define, suggest advantages and disadvantages

  7. Recap…WHY USE JIT? • Stock holding costs down • Op costs down • Cashflow up • Motivation up How so? • Waste down • Relationship with suppliers up (This becomes vital)

  8. However… • Very reliant on external suppliers • Low stock levels means no room for errors • Increases in D can cause probs • Lost EofS • Admin costs up • Needs sophisticated computer technology • Needs to be part of the culture

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