24.2 Just-in-time (JIT) inventory management

Question 1

Just-in-time (JIT) inventory management

Answer 1

Aims to avoid holding inventories by requering supplies to arrive just as they are needed in production and completed products are produced to order.

Question 2

Just-in-case (JIC) inventory management

Answer 2

Aims to reduce the risk of running out of inventory to the level minimum by holding high buffer inventory levels.