Just-in-time (JIT) a production technique highly responsive to customer orders, which uses very little stock holding.
Based on the orders of customers, the stock needed to produce the good for a particular number of customers will arrive “just in time” for the production. This means that no stock is held by the business, thus no money is tied-up in stock holding. This is the complete opposite of the “just-in-case” stock management.
Just-in-case (JIC) a production technique whereby more stock is stored just in case there is a sudden increase in demand.
Controlling stock is important in order to ensure the business holds the right amount. Managers determine the maximum and the minimum stock level the business can hold, including the level at which is necessary to reorder stock. Below is an example of stock control.
