JIC AND JIT project by ARYAN CHOUDHARY

JUST IN CASE
A technique called Just In Case (JIC) Inventory Management calls for keeping inventory to
handle unforeseen demand or supply chain disruptions. According to this strategy, companies
maintain stock levels above their immediate needs to guarantee they have enough stock to meet
unforeseen demand. The JIC strategy can assist firms in reducing the risk of shortage of stocks in
circumstances when supply chain disruptions may result in delays in receiving supplies.
However, this strategy has some disadvantages, such as high carrying costs, the possibility of
obsolescence, and excess inventory. Therefore, companies must balance retaining low inventory
levels to cut carrying costs with holding adequate inventory to fulfil unforeseen demand.
The Healthcare sector is one that frequently applies the Just In Case (JIC) Inventory
Management methodology. Medical supplies, devices, and medications are vital to patient care
and often life-saving in the healthcare sector. In order to meet patient needs and be prepared for
unforeseen demand or supply chain interruptions, healthcare facilities and providers must
maintain adequate inventory levels. In order to prepare for a spike in patient demand during a
pandemic, hospitals might need to keep higher quantities of medical supplies like personal
protective equipment on hand. In a similar vein, due to calamities or other occurrences,
pharmacies may need to stock up on pharmaceuticals that are in high demand or may encounter
supply chain interruptions.

JUST IN TIME
Instead of maintaining large amounts of stock on hand, the Just In Time (JIT) Inventory
Management approach recommends acquiring goods as needed to satisfy consumer demand. In
this strategy, organizations depend on suppliers' prompt delivery and precise demand forecasts to
maintain low inventory levels. The JIT methodology can save inventory carrying costs, lower the
risk of product obsolescence, and increase cash flow for organisations. However, due to the risk
of stockouts and lost sales, this strategy necessitates close cooperation between firms and
suppliers. To effectively utilize the JIT technique, organisations must make sure they have
dependable suppliers and strong supply chain management systems.
The Automobile sector is one that makes heavy use of the Just In Time (JIT) Inventory
Management methodology. The automobile sector has been at the forefront of implementing JIT,
a crucial component of lean production. Due to its rapid production and customer delivery of
customised items, JIT is especially well suited for the automotive industry. According to the JIT
model, automakers base their production needs on real-time demand signals from their clients.
After that, they collaborate closely with their suppliers to make sure the correct components and
materials are sent to the assembly line precisely on time to match the manufacturing schedule.
Automotive firms can lower their inventory carrying costs, cut waste, and boost productivity by
utilising JIT.
What will happen if healthcare industry switches to JUST IN TIME inventory
management system?
While migrating from the Just In Case (JIC) method to the Just In Time (JIT) inventory
management model might bring a number of problems, it can also have a number of advantages
for the healthcare sector.
Managing inventory levels carefully and preventing stockouts is one of the biggest obstacles to
JIT implementation in the healthcare sector. Any delays in the shipping of medical equipment or
supplies could lead to subpar patient care, which could have serious repercussions. Therefore, to
guarantee that the appropriate supplies and equipment reach just in time to fulfil patient
demands, healthcare practitioners must have solid supplier connections and dependable delivery
methods in place.
The healthcare sector also deals with a lot of drugs and medical devices that have a short shelf
life. Effective inventory management is crucial to prevent stock obsolescence because patients
may experience adverse effects or hazard from outdated medical equipment or pharmaceuticals.
Therefore, to optimise their JIT strategy while reducing waste and costs, healthcare providers
need precise demand forecasting and real-time inventory data.
Finally, the supply chain and inventory management procedures may need to be significantly
modified in order to adopt JIT in the healthcare sector. To successfully support the JIT strategy,
healthcare providers must make sure they have the appropriate infrastructure, technology, and
employees in place.

What will happen if automotive industry transfers to JUST IN CASE

inventory management from JUST IN TIME?
The supply chain and inventory management procedures in the automotive sector would undergo
major changes if the industry switched from the Just In Time (JIT) inventory management model
to the Just In Case (JIC) strategy
A considerable rise in inventory levels would be among the change's most obvious
repercussions. Automotive manufacturers would need to carry larger amounts of inventory,
which would result in increased storage and carrying expenses, to make sure they had adequate
stock to meet demand. It may become more difficult to fund capital projects or initiatives for
research and development as a result, which could lower profitability and cash flow.
Moreover, transitioning to JIC could result in overproduction, which would increase waste and
perhaps cause stock obsolescence because the automobile industry extensively relies on real-time
demand signals to decide their production schedules. This would decrease productivity, raise
costs overall, and have a detrimental effect on the industry's environmental impact.
Finally, the industry's supply chain management would need to undergo considerable
modifications in order to move to JIC. Automobile producers would have to reassess their
connections with suppliers and make sure they have the proper controls in place to manage their
inventory levels. They would also need to make potentially expensive investments in personnel
and technology to support this strategy.