Part 5/8:
Revisiting Manufacturing Concepts: Just-in-Time vs. Just-In-Case
Traditionally, manufacturers have relied on the just-in-time (JIT) approach—minimizing inventory and relying on precise timing of component delivery. This method reduces storage costs but leaves supply chains vulnerable to disruptions when inventories run out or delays occur.
The pandemic has pushed firms to rethink this philosophy, considering 'just-in-case' strategies—holding buffer stocks of critical components to ensure continuity during crises. While this enhances resilience, it also increases costs due to higher inventory holdings. Striking the right balance between lean operations and safety stock has become an essential concern in the new manufacturing paradigm.